FL governor DeSantis reports rate reductions and new entrants into state's insurance market

By Mia MacGregor

Feb 7 - (The Insurer) - Governor Ron DeSantis has announced updates to Florida’s insurance market, including rate reductions in Miami-Dade County, statewide auto insurance decreases and the entry of 11 new insurance companies into the market.

DeSantis reported that Citizens Property Insurance Corporation will implement homeowners premium decreases for three-quarters of Miami-Dade, with statewide reductions averaging 5.6 percent.

Additionally, he announced that auto insurance rates are also dropping for companies including Geico (10.5 percent decrease), State Farm (6 percent decrease) and Progressive (8.1 percent decrease).

“There are a lot of factors involved in insurance rates, and Florida’s property and auto markets are challenging – but in addition to the decreases I announced, data suggests that in 2024, Florida had the lowest average homeowners premium increases in the nation, and the overall market has stabilised with 11 new companies having entered the market over the past two years,” said DeSantis.

Over the past three years, Florida has passed five bills aimed at stabilising the state's insurance market, including three focused on tort reform and two on consumer protection.

Key initiatives included expanding home-hardening programmes, eliminating one-way attorney fees and reducing frivolous lawsuits, according to the Florida Office of Insurance Regulation.

DeSantis also announced that Florida now has 7.58 million active insurance policies, an increase of more than 130,000 over the past year.

Among the state’s top 10 carriers, DeSantis reported that 60 percent have expanded their business, while 40 percent have filed for rate decreases.

Citizens is also shrinking, and over 20 percent of its policyholders have seen rate decreases averaging 5.6 percent. Additionally, since 2022, DeSantis reported that more than 477,000 policies have returned to the private market, up from just 16,408 in 2022.

“As Governor DeSantis stated, the 2025 rates reflect the many positive developments that have taken place in the Florida property insurance market since our original recommendations were filed,” said Michael Peltier, a spokesperson for Citizens.

In late January, The Insurer reported that Mangrove Property Insurance Company was approved as the 10th new insurer to enter Florida’s property casualty market since the legislative reforms of 2023. These new companies have brought more than $297mn in policyholder surplus.