A new study shows Florida’s 2022-2023 legal system abuse reforms have successfully stabilized and strengthened the state’s property insurance market, lowered insurance costs for consumers and reduced excessive litigation.
The actuarial study, released September 2 by the American Property Casualty Insurance Association, found that Florida policyholders paid nearly $3 billion less for homeowners and personal auto insurance in 2025 than the year before.
The study, Florida’s Legal Reforms: Lower Insurance Costs and Less Litigation, was commissioned by the APCIA and conducted by Moore Actuarial Consulting and James Lynch Casualty Actuary.
“Florida’s legal system abuse reforms are working as intended,” said Chase Mitchell, APCIA’s assistant vice president of state government relations. “The data shows a clear and compelling trend: litigation is down, competition is increasing, market stability is improving, and home and auto insurance costs are trending downward.
“Consumers are benefiting from more coverage choices and increasingly competitive pricing. We encourage Floridians to shop around and compare policies and prices from different companies to ensure they are getting the best coverage at the best price.”
More specifics from the study:
· Homeowners insurance rate increases are trending significantly downward, falling from an average of 9.6 percent in 2023 to 1.3 percent in 2024 and 0.9 percent in 2025.
Personal auto rates fell by approximately 4% in 2025, which is a dramatic reduction from the average auto rate increase of 7.1 percent in 2022.Homeowners insurance direct written premiums declined in 2025 by approximately $1.29 billion.Personal auto insurance direct written premiums declined in 2025 by approximately $1.70 billion.
As insurer performance improved, the study says consumers also benefited from a significant increase in policyholder dividends and credits. That includes:
Policyholder dividends increased 118% between 2023 and 2025.Dividends across home and auto rose 43% in 2025 alone, reaching $211 million.So far in 2026, major insurers announced additional credits and dividends totaling more than $1.4 billion for Florida auto policyholders.
The study also shows Florida’s property insurance market is more stable and stronger today than it was before reforms were enacted.
Key indicators of that include:
Twenty new property and casualty insurers have entered Florida’s market since reforms were enacted.More than $850 million in new capital has entered the state’s insurance market.Citizens Property Insurance Corporation’s market share fell to approximately 3% in 2025, down sharply from peak levels.Fewer insurers are experiencing financial distress or enhanced regulatory monitoring.Florida-based insurers are financially stronger compared to five years ago, with median risk-based capital ratios rising approximately 40% since 2020.
In addition, the study found substantial declines in homeowners insurance litigation following enactment of reforms aimed at reducing excessive litigation:
The number of lawsuits filed against property insurers has fallen by approximately two-thirds from a peak of more than 8,000 in 2021 to around 2,500 by the end of 2025.The number of lawsuits involving assignment of benefits has fallen from 1,000-2,000 per month to approx. 200 per month.
“Affordable and available insurance is essential to helping Floridians protect their homes, businesses and vehicles when the worst happens,” Mitchell said. “While Florida continues to face significant risks from catastrophic hurricanes and flooding, these reforms have reshaped the insurance market and put the state on a much stronger and more sustainable path that will help ensure Floridians can access coverage that fits their needs and budget now and in the future.”
