Gallagher Re, a global reinsurance brokerage and risk advisory firm, reports that Florida’s property insurance market is experiencing a significant resurgence, driven largely by recent tort reforms that have restored confidence among carriers, reinsurers, and capital providers.
Gallagher Re data also shows that across all layers, insurers were able to remove unfavourable terms and conditions, demonstrating a market that is becoming more competitive, manageable, and attractive.
Gallagher Re highlights that the legislative reforms have addressed long-standing challenges within Florida’s property insurance system. Their research shows that property claims lawsuits have declined sharply, returning to levels not seen since 2019.
Domestic insurers collectively posted profits in 2024 for the first time since 2016, despite a USD 20 billion loss from Hurricane Milton, a trend Gallagher Re attributes to reduced legal costs, improved loss ratios, and more disciplined underwriting.
The firm also notes that the market has drawn new participants, with fourteen new insurance companies entering Florida since the reforms, and that the ongoing migration of policies from Citizens to private insurers signals a strengthening private market. Gallagher Re data further indicates that homeowners insurance rates, historically among the highest in the US, are stabilising, with early indications of decline.
According to Gallagher Re, reinsurers who had previously scaled back or exited Florida are now reassessing the market. The firm emphasises that improvements in the legal environment have encouraged these players to return, with Hurricanes Helene and Milton in 2024 providing a real-world test of the reforms’ effectiveness.
Gallagher Re observed that despite substantial claims, sufficient reinsurance capacity remained available, reinforcing confidence among returning participants.
“A number of players that had been on the sidelines are coming back in, because they’ve gotten more comfortable with the legislative environment in Florida. This is driven by the fact they had a very high-quality datapoint in Hurricane Milton to actually see it in the numbers,” added Joshua Knapp, Executive Vice President, Gallagher Re.
Gallagher Re stresses that now is an ideal moment for insurers, reinsurers, and capital providers that have remained cautious in recent years to re-evaluate Florida.
Their analysis shows that legislative reforms have created a more predictable legal environment, reduced litigation, and improved market conditions, providing a foundation for disciplined and profitable risk-taking.
In a global context where insurance markets face heightened exposures to natural and human-made catastrophes, climate change, inflation, and supply chain disruptions, Gallagher Re concludes that Florida demonstrates how thoughtful regulatory action can stabilise a market and attract capital.
Gallagher Re’s insights underscore that Florida’s experience illustrates how strategic reforms, combined with informed market execution, can transform a challenging insurance environment into a viable and rewarding opportunity for both domestic and international participants.
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