According to reinsurance broker Gallagher Re’s 1st View mid-year renewal report, recent legislative reforms in the State of Florida encouraged reinsurers to write across the board at the mid-year renewals, in hopes of maintaining their market share on programmes.
The reforms, signed into law in late December 2022, have successfully reduced property litigated claims by a substantial margin, creating a more predictable and stable environment for insurers and reinsurers, which has seen some companies who retreated return, or consider returning to Florida’s property market.
Of course, it was always going to take some time for the reforms to work through and for the market to see the benefits, but Gallagher Re’s mid-year renewal report suggests a more positive period for the Florida marketplace.
“During the marketing phase reinsurers signalled a desire to grow, with some reentering the Florida market after previous cutbacks,” said the reinsurance broker. “Quotes were generally risk-adjusted flat, though some markets who had previously leaned furthest into the hard market sought additional increases.”
The broker added that capacity indications with quotes reemphasised a strong pool of capacity across the risk spectrum, aiding in better assessment of final terms, while firm orders were competitive and broadly supported.
“More reinsurers were willing to write across the board in hopes to maintain their market share on programs. However, in some instances this capacity was not taken up on bottom layers as cedants gave preference to incumbents who paid a loss,” said Gallagher Re.
According to the reinsurance broker’s analysis, programmes were “often oversubscribed” which enabled the removal of some unfavourable terms and conditions, including the elimination of many frontloaded and differential payment terms.
Overall, there was a risk-adjusted price decrease of 10.7% at the June 2025 Florida property reinsurance renewals.
These decreases were achieved across all layers, noted Gallagher Re, with the average decrease on low layers being 9%, as mid layers dropped by 12%, and upper layers fell by as much as 20%.
“Strategic buydown layers were available, enabling clients to reduce retentions year-over-year in Florida,” said Gallagher Re. “Supply kept pace with increased demand in a decreasing rate environment.”
Commenting on the Florida marketplace, Gallagher Re said: “The shift in the market was particularly evident in Florida, where recent legislative reforms have played a crucial role in transforming the risk landscape. These reforms have successfully reduced property litigated claims by a substantial margin, creating a more predictable and stable environment for insurers and reinsurers alike.
“Hurricane Milton further reinforced the positive impact of these legislative changes. By providing a real-world scenario to test the effectiveness of the reforms, the hurricane offered reinsurers valuable data and insights. Earlier this year, Gallagher Re’s Florida summit gave reinsurers a forum to meet and hear from local lawyers and roofers / contractors about what they’re seeing in the market.
“As a result, reinsurers have gained increased confidence in the Florida market, viewing it as a more manageable and attractive opportunity.
“This newfound confidence has led reinsurers to reassess their view of risk and adjust their strategies. Many who had previously scaled back their operations or exited the market are now reconsidering their positions. The improved risk environment has reinsurers eager to expand their portfolios and capture market share in a region that is now perceived as less volatile.”
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