Florida’s Insurance Market Shows Signs of Recovery, but Reinsurance Challenges Persist

Florida’s insurance landscape is showing signs of recovery, with increased reinsurance capacity and legislative reforms contributing to a more balanced market. According to Kyle Rhodes, President of North American operations at TransRe, recent adjustments in reinsurance pricing and the issuance of catastrophe bonds have helped boost available capital. This shift has provided relief for higher reinsurance layers, leading to optimism for the 2025 renewal season.

Despite these positive developments, lower layers of reinsurance—responsible for covering smaller, more frequent claims—remain costly. The aftermath of two hurricane landfalls in 2024 continues to impact pricing, and experts anticipate that rates for these lower-tier coverages may rise. Insurers and third-party capital providers are reassessing their risk appetite in response.

Looking ahead, Florida’s insurance market is expected to grow, with new insurers entering the state and Citizens Property Insurance Corporation reducing its policy count. The key question for 2025 will be how new market entrants influence competition and pricing. While progress is evident, reinsurers must still navigate significant hurdles to ensure long-term market stability.