FLOIR: Florida property insurance lawsuits down nearly 25% in H1

(The Insurer) - The Florida Office of Insurance Regulation has expressed increased confidence in the state’s property insurance market, citing positive impacts from reforms enacted between 2019 and 2023, according to a new report from the regulator.

The latest Property Insurance Stability Report released this month noted that key factors contributing to market stabilization include a decline in insurance litigation and costs, lower rates, faster claims resolution, a pause in rising reinsurance costs, new market entrants and a return to profitability and stability for insurers.

The report highlights a significant decrease in litigation-related expenses, with average defense costs per claim dropping from $992.89 in 2022 to $817.64 in 2024.

Claims lawsuits, as indicated by Personal Residential Legal Service of Process filings, fell by 23% in 2024 and continued to decline in early 2025. The report said that the number of such lawsuits was down nearly 25% in the first six months of 2025 compared with the same period last year.

Additionally, the percentage of claims going to litigation decreased to 8.62% in 2024 from 9.73% in 2023. The report also notes improved claims closure times, with the average number of days to close a claim dropping from 77 days in 2023 to 57 days in 2024.

The state-run Citizens Property Insurance Corporation’s depopulation effort has reduced its share of homeowners' policies, returning more policies to the private market. Citizens represents 9% of the homeowners multiperil policies as of March.

Rate filings for 2024 showed a slight downward trend, and 14 new companies have been approved to write residential policies since the reforms.

However, despite improvements, the report noted that 16 insurance companies were referred to the Insurer Stability Unit for enhanced monitoring, with only one added to the list, now comprising 17 companies.

Despite the 2024 Atlantic hurricane season, reinsurance costs decreased 1.7% in 2024 compared to 2023, with projections indicating flat costs in 2025.

“Preliminary 2025 data suggests price stabilization with anticipated flat risk adjusted reinsurance costs from 2024, on average. This initial data signifies a strengthening reinsurance market, despite multiple hurricanes making Florida landfall during the 2024 Atlantic hurricane season,” the report stated.

“Reinsurance is a direct and significant cost to consumers and relief in this area is an important sign that the reforms are working.”