In recent years, Florida has passed several laws in an attempt to stabilize the struggling insurance market. (Credit: pla2na/Adobe Stock)
“Today I announced that Citizens Property Insurance will be instituting homeowners’ insurance premium decreases for three-quarters of Miami Dade, and statewide decreases averaging 5.6%. I also was pleased to announce significant reductions in auto insurance rates in Florida for companies like GEICO (10.5% decrease), State Farm (6% decrease) and Progressive (8.1% decrease),” DeSantis said in a release. “For the last four years, inflation spurred by the Biden Administration, active hurricane seasons, and unchecked litigation in Florida made for an environment that caused turbulence in insurance markets and steep increases in premiums. There are a lot of factors involved in insurance rates, and Florida’s property and auto markets are challenging — but in addition to the decreases I announced, data suggests that in 2024, Florida had the lowest average homeowners’ premium increases in the nation, and the overall market has stabilized with 11 new companies having entered the market over the past two years."
In recent years, Florida has passed several laws in an attempt to stabilize its struggling
insurance market. Key reforms include a 2019 bill that curbed abusive litigation tied to the assignment of benefits (AOB); a 2021 bill that tightened claim deadlines and encouraged dispute resolution over lawsuits; and a 2022 action that eliminated one-way attorney fees for AOBS, targeted roofing scams and created a $2 billion “Reinsurance to Assist Policyholders” program.
Desantis said that Florida now has around 7.58 million active insurance policies, which is an increase of more than 130,000 over the last year. He credits this growth to the entry or expansion of 11 carriers in the state, which could reflect renewed confidence in the market.
Among the state’s top ten carriers, 60% have reportedly expanded their business and 40% have filed for rate decreases. Citizens, the state’s insurer of last resort, expanded rapidly in recent years as the private insurance market has struggled but it is now shrinking. Since 2022, the state reports more than 477,000 policies have returned to the private market, which could signal increased competition and a more attractive market for customers.
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