Florida’s legislative reforms to address legal system abuse and claim fraud are stabilizing the state’s property/casualty insurance market, according to a new Issues Brief published by the Insurance Information Institute (Triple-I), an affiliate of The Institutes.

Claims-related litigation has significantly declined in the state over the past two years, and nearly 40 percent of home insurers have requested rate decreases in 2024.

Eleven new property insurers entered the Florida insurance market and six of the top 10 national insurers writing residential policies in Florida grew their market share in 2024, the brief noted.

“While it took some time to get through the massive amounts of litigation fueled by billboard attorneys just before reform was passed, citizens of the Sunshine State are now clearly seeing the benefits of a more stable and affordable insurance marketplace,” said Triple-I CEO Sean Kevelighan. “With such visible progress being made it is important that the reforms remain, so Floridians no longer fall victim to the legal system abuse of the past such as assignment of benefits claim fraud schemes.”

The impact of the 2022 and 2023 reforms can be seen in premium rate changes, particularly with respect to property insurance, Triple-I stated.

Homeowners rates grew at a much slower rate in 2024, even as rate growth continued to accelerate nationally.

Citizens Property Insurance Corp.’s depopulation has reduced its PIF by nearly 40 percent to under 850,000 customers as of Feb. 28, 2025.

The financial improvement of the private market has enabled Citizens to track toward a much more manageable level of risk, reducing the probability of a “hurricane tax” due to a shortfall to pay storm claims, according to Triple-I.

Legislative reform has had a significant impact on the state’s private passenger auto market, the brief noted.

Several national auto writers plan to file for Florida rate decreases in 2025 due to a 500 percent year-over-year decline in auto glass claim lawsuits in 2024 after assignment of benefits for this generator of fraudulent claims was banned.

As the Florida Legislature begins its 2025 session today, there is concern over bills filed in the state’s Senate and House that would allow one-way attorney fees to be awarded for certain types of claim litigation, a reversal of previous reforms eliminating the fees.

“Despite continuing market and political pressures, Florida policyholders and taxpayers stand to benefit tremendously from the 2022 and 2023 legislation. Given the pain of recent years and the continuing perils in this catastrophe-prone state, it’s important for all stakeholders to support continued reform,” Triple-I’s Issues Brief concluded.