ALIRT Insurance Research released a report this week finding that Florida’s homeowners insurance market has stabilized after years of financial strain — following legislative reforms adopted in late 2022 and early 2023.
The 2025 Florida Domestic Property Insurer Market Update concludes that the market has rebounded from conditions in 2022, when litigation costs, rising losses and multiple insurer failures pushed the system close to collapse.
Data shows that changes to litigation rules and андеррайтинг practices have contributed to renewed insurer participation and improved financial results.
Since the reforms, 18 new or re-launched insurers have entered or announced plans to enter the Флорида market, according to the report. Six companies began writing homeowners insurance during the 2024–2025 period.
“The transformation of the Florida property insurance market in just three years is extraordinary,” ALIRT Insurance Research said. “The combination of litigation reforms, strengthened underwriting discipline, and stabilizing reinsurance dynamics has reshaped one of the nation’s most challenged insurance markets into a more sustainable and investable environment.”
Lighter burden for state-backed program
The report points to several indicators of improving market conditions — including a reduction in policy counts at Citizens Property Insurance Corporation, Florida’s insurer of last resort, as policies have shifted back to the private market over the past two years.
ALIRT also reported improvements in insurer balance sheets and operating results, citing higher scores across its proprietary ALIRT Score framework, which evaluates financial performance and solvency trends.
Analysis notes an increase in newly formed insurers, including reciprocal insurance exchanges — reflecting growing interest from managing general agents, private equity firms and reinsurance-backed structures.
Work remains to be done
The study focuses on a group of 37 Florida-domiciled property insurers — reviewing their ownership models, business strategies, premium growth, underwriting results, operating earnings and capital levels.
ALIRT found that, taken together, these companies show stronger capitalization and improved profitability compared with prior years.
Despite the gains, the report cautions that Florida’s property insurance market remains vulnerable. ALIRT said the sector faces ongoing exposure to hurricane losses, volatility in global reinsurance pricing and potential regulatory or political changes that could alter the reforms enacted three years ago.
The firm concluded that while current conditions represent the strongest position for Florida’s homeowners insurance market since the mid-2010s, the possibility of abrupt reversals remains a persistent risk.
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