Florida Regulator and Advocates clash Over Property Insurance Market Recovery
A โขdebate is brewing in Florida over the success of recent property insurance โขreforms, with theโ state’s Office of Insurance Regulation (OIR) and consumer advocacy groups offering sharply contrasting perspectives. The core of the disagreement centers on whether โthe changes enacted by the state legislature in โ2022 โขare truly benefiting homeowners, or if they are leading to unfair โclaimโค denials and โincreasedโ litigation despite an apparent stabilization of the market.
According to OIR, the โreforms are working. The office reports that 17 new property insurersโ have entered the Florida market, andโข approximately โ200,000 โpolicies have been removed from Citizens, theโ state’s insurer of last resort, โduring 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.โค OIR also points toโฃ a 10.7%โ price decrease in โขreinsurance costsโ for โFloridaโ carriers, as highlighted in a recent report by Gallagher Re, contributing to potential โrate reductions.
However, a report from consumer advocates paints a different picture, citing a 54% increase in property insurance premiums since 2019, including a 30%โฃ jump since 2021 following fourโฃ major hurricanes.
OIR’s Commissioner michael Yaworsky Elliott disputes the advocates’ portrayal of premium increases. Whileโ acknowledging a โคrise in the average statewide annual premium from $3,773 a year โคago to $3,828, she explains that premiums are calculated โคbyโ multiplying rates by coverage amounts, and includeโค fees, taxes, andโ surcharges. Elliott further states โthat OIR has received 72 filings for rate decreases and 91 filings for 0% rate increases as โof november 15, suggesting underlying rates are either decreasing orโข stabilizing, even if overallโ premiums rise due to factors like increased home values.
A key point of contention is the rate of claim closures without payment. The advocates’โ report alleges โฃthat more than 50% of homeowners’ claims are being closed without any payout. Weiss Ratings previously reported claim closureโฃ rates without payment ranging from 40% to 70% during 2024. OIRโค countered these figures, stating that a notable number of denials were for claims โฃbelow the deductible, particularly followingโ Hurricanes Helene and Milton, thus distorting the overall statistics.
This practice of closing claims without payment is fueling litigation, according to Anders Croy, communications โฃdirector of Florida Watch. “Companies are just trying to close thoseโค legitimate claims without paying aโ cent,which is leading people to contact an attorney to get what they are owed,” Croy stated in theโ report.
Despite this,โฃ OIR dataโฃ shows a decrease in lawsuits against insurers, falling from a highโข of approximately 82,300 in 2021 to 50,600 in 2024, accordingโข to the florida Department of Financial Services.
According to OIR’s July 2025 Property Insuranceโฃ Stability Report, of the 698,742 claims closed in the state duringโข 2024, 60,261 were litigated.โค These figuresโข areโ derived from the Florida Property Claims Lifecycle โReport (PCLR), a mandatory filing for all property insurers.
OIR concludes that continued organic marketโ recovery, free fromโ further legislative or regulatoryโ changes, is crucial to maximizing the benefits of the reforms for Florida policyholders.
