The Sunshine State’s long-troubled property insurance market is showing initial signs of recovery following years of turmoil that drove rates skyward and pushed several carriers into insolvency. New data from Florida’s Office of Insurance Regulation reveals a dramatic financial turnaround for insurers operating in the state during the first half of 2024.
Florida-based property insurers reported a combined net income of $461.5 million through June 2024, a stark reversal from the $1 billion in losses recorded during the same period in 2023. This financial rehabilitation comes after lawmakers enacted sweeping reforms aimed at stemming litigation abuse and stabilizing a market that had been spiraling toward collapse.
“We’re beginning to see tangible evidence that Florida’s insurance reforms are working,” said Mark Friedlander, communications director at the Insurance Information Institute. “The industry is healthier today than it’s been in nearly a decade, though we still have significant challenges ahead.”
The market improvement follows several years of legislative action, culminating in major reform packages passed during special sessions in 2022 and regular sessions in 2023. These reforms specifically targeted Florida’s litigation environment, which had become notoriously plaintiff-friendly.
One of the most impactful changes eliminated what’s known as “one-way attorney fees,” a provision that previously required insurers to pay a policyholder’s legal fees if they prevailed in court by any amount. Industry experts pointed to this mechanism as a primary driver of excessive litigation.
The numbers tell a compelling story. New data shows litigation against Florida insurers has plummeted by 57% since the legislative changes took effect. In 2022, Florida carriers faced approximately 100,000 lawsuits. By comparison, projections for 2024 suggest that number may fall below 40,000.
Citizens Property Insurance Corporation, the state-run insurer of last resort, has seen its policy count drop from a peak of 1.4 million to under 1.2 million as private market options begin to reemerge. Citizens was never intended to be the state’s largest property insurer, but became so as private companies fled or collapsed.
“The depopulation of Citizens is perhaps the most encouraging market indicator,” explained Dr. Charles Nyce, associate professor of risk management at Florida State University. “When private insurers feel confident enough to take on policies from Citizens, it signals a healthier, more competitive marketplace.”
Industry stabilization has attracted new capital investment. Seven new property insurance companies have entered Florida’s market in the past 18 months, while existing carriers have secured over $1 billion in additional capital to expand their capacity.
The reforms haven’t been without controversy. Consumer advocates have questioned whether homeowners will see meaningful rate relief despite insurers’ improved financial positions. While the average premium increase requested by carriers has moderated from 54% in 2022 to 13% in early 2024, Florida property owners still pay the nation’s highest average premium at $6,000 annually—nearly triple the national average.
“Financial stability for insurance companies doesn’t automatically translate to affordability for homeowners,” said Tasha Carter, Florida’s Insurance Consumer Advocate. “The true measure of success will be when we see sustained premium reductions for Florida families.”
Florida’s geographic vulnerability remains an unavoidable factor in insurance costs. The state faces hurricane exposure along both the Atlantic and Gulf coasts, with climate models suggesting increased storm intensity in coming decades.
The reforms have also affected consumers’ legal recourse. Homeowners now face more stringent requirements before filing lawsuits, including mandatory alternative dispute resolution processes and stricter deadlines for filing claims.
Republican lawmakers who championed the reforms point to the improved financial health of insurers as vindication for their approach. “We made difficult but necessary decisions to save Florida’s insurance market from complete collapse,” said Senate President Kathleen Passidomo. “The data confirms we’re on the right path.”
Democratic critics maintain that the reforms went too far in favoring insurance companies over consumers. “We’ve limited homeowners’ ability to hold insurers accountable without seeing the premium relief that was promised,” argued Representative Fentrice Driskell, House Democratic leader.
Reinsurance costs—the insurance that insurance companies buy to protect themselves—have also moderated, falling by approximately 15-20% during 2024 renewal periods. This decrease provides another tailwind for market recovery, as reinsurance typically represents 40-50% of premium costs in Florida.
Insurance Commissioner Michael Yaworsky has expressed cautious optimism about the market’s trajectory. “We’re seeing positive trends in company solvency, claims litigation, and market capacity,” Yaworsky noted. “But reforming a market this distressed takes time, and we must remain vigilant.”
As hurricane season progresses through November, Florida’s property insurance recovery remains tentative. A major storm could quickly erase recent gains and test the reformed system. For now, however, both regulators and industry analysts are breathing a collective sigh of relief as the first meaningful signs of market stabilization emerge.
“Florida has turned a corner,” said Robert Hartwig, director of the Risk and Uncertainty Management Center at the University of South Carolina. “The question now is whether these reforms will deliver long-term sustainability and eventually more affordable coverage for Florida homeowners.”
