Reinsurers are showing their strongest engagement with Florida property carriers in years, reflecting growing confidence in the state's 2022 and 2023 legal reforms. According to Adam Schwebach of Gallagher Re, recent hurricane losses have developed more predictably, with fewer lawsuits attached to initial claims. That shift has reduced uncertainty tied to litigation and social inflation, which previously drove reinsurers to pull back.
As a result, reinsurers are reassessing pricing models that included heavy litigation loads. While brokers have reported double-digit rate reductions, reinsurers may view effective decreases as closer to mid-single digits once those loads are removed. The change reflects recalibration rather than relaxed underwriting.
Ahead of the 6.1 renewals, reinsurers are proactively approaching Florida carriers with growth proposals and structural ideas. Increased capacity, particularly below the Florida Hurricane Catastrophe Fund layer, points to stronger competition at mid-year. For claims adjusters, expanded carrier growth and greater market stability could translate into higher exposure counts and sustained catastrophe claim volumes heading into the 2026 hurricane season.
