Florida insurance and reinsurance market news

Universal Insurance Holdings, Inc. has already placed approximately 90% of its first-event catastrophe reinsurance tower and has secured additional multi-year cover to run through the 2027 hurricane season, the firm’s CEO Stephen Donaghy said today.

Adam Schwebach of reinsurance broker Gallagher Re is expecting more new cedents to enter the insurance-linked securities (ILS) market in 2026, describing it as a product that can no longer be ignored for catastrophe risk.

Homeowners property insurance rates are falling further in catastrophe exposed Florida and Louisiana, with Citizens Property Insurance Corporation’s Board of Governors recommending rate cuts for most policyholders and the Louisiana Department of Insurance announcing insurers rate decreases.

Speaking during a panel discussion at the 2025 Florida Chamber Annual Insurance Summit yesterday, Chris Dittman of Aon’s Reinsurance Solutions and John Seo of Fermat Capital Management highlighted that meaningful softening in catastrophe reinsurance rates and the cost of risk capital is expected to flow to the benefit of Floridians in time.

Recent tort reforms in Florida have signaled a notable shift in the state’s property insurance market, with June’s reinsurance renewals also providing further evidence of the market’s recovery, according to broker Gallagher Re.

Florida’s property insurer of last resort Citizens Property Insurance Corporation is anticipating lower reinsurance costs in 2026, as its policy count and exposure-base has continued to decrease meaning less limit is likely to be needed, while there is an expectation of improved market conditions due to softening that may persist.

While the mid-year renewals offered some pricing relief, many small- to medium-sized US insurers still find traditional reinsurance costly in certain cases, prompting them to explore alternative sources of capacity such as catastrophe bonds according to AM Best.

US primary insurer Allstate has purchased a new aggregate reinsurance cover for its US homeowners business at the mid-year renewals, adding what is a new protection feature for the company that covers events greater than $1 million and will provide $325 million of placed aggregate limit, across a $500 million layer excess of a $3.5 […]

Insurance carriers in Florida are likely to turn to the private reinsurance and capital markets for even more limit after two state funded reinsurance facilities were amended in recent days.

The CEO of Citizens Property Insurance Corporation has hailed the ongoing recovery of Florida’s property insurance market, explaining that the insurers policy count now stands some 45% lower than its most recent peak and exposure down 43% in just one year, while market conditions suggest this trend will continue.