Guy Carpenter said the combination of legal reform, enhanced building resilience and disciplined underwriting restored confidence in Florida’s reinsurance/insurance market, resulting in increased capacity and improved terms and pricing during the June reinsurance renewal period.
Florida’s property insurance market has strengthened since the enactment of landmark tort reform in December 2022, Carpenter said, with domestic carriers’ combined ratio reaching 76.8% in 2025.Florida Re Renewal June 2026 – Booming Market Returns Capital to Healthy Levels“.
“Policyholder surpluses surged 45% as insurers continued to rebuild from lower capital levels caused by the previous legal environment,” said Guy Carpenter. He explained that strong surplus levels allowed many insurers to retain more risk and negotiate improved reinsurance terms as they entered 2026 renewals.
The report continued: “We also continue to observe a decline in litigation volume, which is down approximately 66% since the peak of litigation activity. Policyholders are now starting to see much-anticipated rate relief on the back of earnings results and legal reforms that have proven successful.”
The 2022 law reform aims to address the plethora of lawsuits plaguing homeowners over high insurance costs. A recent report calculated that property/casualty insurance costs in Florida are now about 14.5% lower than they would have been without the reforms.
Strong underwriting results were also boosted by a mild hurricane season – the first in a decade without a tropical storm making landfall, the report noted.
The decline at Citizens Property & Casualty has provided a significant source of new business for many insurers over the past three years, helping to launch 14 new companies, Carpenter said, adding that Citizens Property & Casualty has exited more than 1.4 million policies since 2022. “As of early 2026, the era of fewer citizens is now largely over, and going forward, companies will rely on more traditional market competition to drive growth.”
property disaster needs
Demand for property catastrophe capacity continued to grow during the June renewal period, driven by fewer citizens, population growth and rising average policy values, the report said, noting continued growth in demand for property catastrophe capacity.Mother increased by 12%, that is Easily satisfy reinsurers’ expanding appetite.
“Reinsurers’ desire to grow with Florida clients is reflected in a broad increase in risk appetite across affiliate points and a willingness to consider expanding coverage,” the report added. “There is ample capacity in products such as low-add catastrophe tiers and recovery premium protection, areas that have been capacity-constrained areas in recent years.”
Carpenter said that while reinsurers try to expand relationships with existing trading partners by offering a wider range of project capabilities, they often find it difficult to acquire additional share given the strong interest from existing reinsurers across all points of affiliation.
“In addition, there is greater interest in providing subsequent event coverage. Mortgage reinsurers are more frequently offering combined packages that address multiple risk transfer needs, such as top and drawdown and top and aggregate coverage.”
Competitive pricing
Guy Carpenter said property catastrophe prices continued to soften, with risk-adjusted declines typically in the -15% to -20% range, with some individual layers experiencing greater risk-adjusted declines, particularly at remote attachment points.
“Additionally, the burden of restoring premiums is beginning to decline from the extremely high levels of recent years,” the report continues.
Demand for quota shares declines
Demand for quota share business has diminished as Florida insurers’ balance sheets have strengthened, but reinsurer interest in Florida’s quota share business continues to rise due to the strong outlook for insurers in the state.
“Quota share terms have been meaningfully improved for Florida airlines to receive additional catastrophe occurrence limits, additional catastrophe aggregate limits and additional cession commissions.”
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