Florida's insurance crisis was driven by a combination of major hurricane losses (Irma 2017, Ian 2022), Florida-specific litigation abuse that made the state the most expensive liability market in the U.S. despite having average loss rates, and reinsurance market tightening globally. Tort reform legislation in 2022 and 2023 significantly curtailed the litigation abuse and is the primary driver of the 2026 market improvement.
Florida's property insurance market deteriorated from 2017 to 2023 for reasons that were structural, not just weather-related.
Hurricane losses. Hurricanes Irma (2017) and Ian (2022) produced massive claims that reset industry loss expectations for the state.
Litigation abuse. Attorney fee multipliers and assignment of benefits schemes made Florida the most expensive liability market in the U.S. — the single largest structural driver of the crisis.
Reinsurance and exits. Global reinsurance tightened after major climate events, and 12 insurers withdrew from Florida between 2020 and 2023. Tort reform in 2022–2023 has largely reversed the trajectory.