Florida Regulator and Advocates clash Over Property Insurance Market Recovery
A debate is brewing in Florida over the success of recent property insurance reforms, with the state’s Office of Insurance Regulation (OIR) and consumer advocacy groups offering sharply contrasting perspectives. The core of the disagreement centers on whether the changes enacted by the state legislature in 2022 are truly benefiting homeowners, or if they are leading to unfair claim denials and increased litigation despite an apparent stabilization of the market.
According to OIR, the reforms are working. The office reports that 17 new property insurers have entered the Florida market, and approximately 200,000 policies have been removed from Citizens, the state’s insurer of last resort, during 2025. Citizens’ policy count peaked at 1.3 million in early 2024, and a December 2024 press release from Citizens indicated 428,000 policies were transferred throughout 2024. OIR also points to a 10.7% price decrease in reinsurance costs for Florida carriers, as highlighted in a recent report by Gallagher Re, contributing to potential rate reductions.
However, a report from consumer advocates paints a different picture, citing a 54% increase in property insurance premiums since 2019, including a 30% jump since 2021 following four major hurricanes.
OIR’s Commissioner michael Yaworsky Elliott disputes the advocates’ portrayal of premium increases. While acknowledging a rise in the average statewide annual premium from $3,773 a year ago to $3,828, she explains that premiums are calculated by multiplying rates by coverage amounts, and include fees, taxes, and surcharges. Elliott further states that OIR has received 72 filings for rate decreases and 91 filings for 0% rate increases as of november 15, suggesting underlying rates are either decreasing or stabilizing, even if overall premiums rise due to factors like increased home values.
A key point of contention is the rate of claim closures without payment. The advocates’ report alleges that more than 50% of homeowners’ claims are being closed without any payout. Weiss Ratings previously reported claim closure rates without payment ranging from 40% to 70% during 2024. OIR countered these figures, stating that a notable number of denials were for claims below the deductible, particularly following Hurricanes Helene and Milton, thus distorting the overall statistics.
This practice of closing claims without payment is fueling litigation, according to Anders Croy, communications director of Florida Watch. “Companies are just trying to close those legitimate claims without paying a cent,which is leading people to contact an attorney to get what they are owed,” Croy stated in the report.
Despite this, OIR data shows a decrease in lawsuits against insurers, falling from a high of approximately 82,300 in 2021 to 50,600 in 2024, according to the florida Department of Financial Services.
According to OIR’s July 2025 Property Insurance Stability Report, of the 698,742 claims closed in the state during 2024, 60,261 were litigated. These figures are derived from the Florida Property Claims Lifecycle Report (PCLR), a mandatory filing for all property insurers.
OIR concludes that continued organic market recovery, free from further legislative or regulatory changes, is crucial to maximizing the benefits of the reforms for Florida policyholders.
