Florida homeowners and personal auto policyholders paid nearly $3 bn less for insurance in 2025 than a year earlier, according to a new actuarial study commissioned by the American Property Casualty Insurance Association.
The report links the decline to legal reforms enacted in Florida during 2022 and 2023. Its authors found lower litigation activity alongside improved insurer results and greater competition in the property insurance market.
Moore Actuarial Consulting and James Lynch Casualty Actuary conducted the study, Florida’s Legal Reforms: Lower Insurance Costs and Less Litigation. APCIA released the findings on September 4.
The analysis examined changes in homeowners and personal auto insurance following reforms aimed at reducing litigation costs. According to the report, policyholder spending fell as insurance market results improved during 2025.
“Florida’s legal system abuse reforms are working as intended,” said Chase Mitchell, assistant vice president of state government relations at APCIA. He said litigation has declined while competition and market stability have improved.
Mitchell also pointed to lower insurance costs and more policy choices for consumers. APCIA advised Florida residents to compare coverage and pricing across carriers as competition increases.
Policyholder dividends and credits also rose as insurer financial results improved. The study said those payments provided another source of savings beyond changes in premiums.
Florida’s homeowners insurance market entered 2025 after several years of insurer failures, rapid premium increases and reduced private-market capacity. The study found conditions have since become more stable as carrier performance recovered and additional competitors entered the market.
Litigation trends changed substantially during the same period. The report recorded sharp declines in homeowners insurance lawsuits following reforms designed to reduce excessive legal costs associated with property claims.
Lower litigation expenses affect insurers through claims costs and reserve requirements. When those expenses decline, carriers have more room to compete on pricing while maintaining underwriting margins.
The study also found stronger indicators across the broader property insurance market. Improved insurer performance has supported capital positions and increased the number of coverage options available to homeowners.
Florida still carries substantial catastrophe exposure from hurricanes and flooding. Those risks continue to influence homeowners insurance premiums regardless of changes in litigation costs.
“Affordable and available insurance is essential to helping Floridians protect their homes, businesses and vehicles when the worst happens,” Mitchell said. He added that catastrophe exposure remains a major factor for insurers operating in the state.
APCIA argues that the 2022-2023 reforms changed the economics of Florida insurance by reducing litigation costs and improving conditions for private carriers.
The nearly $3 bn decline in combined homeowners and personal auto spending during 2025 represents the study’s main measure of the financial effect on consumers.
The report also points to increased competition and higher policyholder credits as evidence of improving market conditions. Florida’s insurance costs remain elevated in many areas, though the study indicates the direction of pricing has changed compared with the period before the reforms.
