A new report from Guy Carpenter, a business of Marsh, found that legal reforms, stronger building resilience and disciplined underwriting have helped restore capital and confidence in Florida’s property market, with risk-adjusted property catastrophe pricing at the June renewals generally down 15%–20% across many layers and Florida clients securing more than 12% additional reinsurance capacity compared with a year earlier.
The global risk and reinsurance specialist explained that Florida insurers renewing their reinsurance programs on June 1, 2026, generally experienced favourable outcomes driven by materially stronger balance sheets, improved underwriting performance, and sustained investor interest in Florida risk.
Guy Carpenter’s report added, “Since landmark legal reforms in December 2022, Florida’s property insurance market has strengthened with domestic underwriters posting a 77% combined ratio in 2025.
“This was helped by a benign hurricane season—the first in a decade without a landfalling tropical storm. Policyholders’ surplus, which rose roughly 45% at year-end 2025, enabled many insurers to retain more risk and negotiate improved reinsurance terms heading into the 2026 renewals.”
As noted, Risk-adjusted property catastrophe pricing generally declined in the -15% to -20% range across many layers, due to reinsurers expanding appetite across attachment points.
“Quota share markets also showed notable improvement, with carriers securing additional catastrophe occurrence and aggregate limits and enhanced ceding commissions, reflecting confidence in the improved performance outlook,” the report added.
Guy Carpenter’s Florida clients reportedly secured more than 12% additional reinsurance capacity during June renewals compared to the previous year.
In addition, more than $3.2 billion in new Florida-focused catastrophe bonds have been issued for 12 sponsors so far in 2026, including three new sponsors.
Randy Fuller, Florida Segment Leader, Guy Carpenter, commented, “Florida’s property market is on markedly stronger footing. Legal reforms, improved building resilience, and disciplined underwriting have combined to restore capital and confidence.
“That restoration is visible in the way insurers and reinsurers approached the June renewals; more capacity was available, terms improved, and pricing moved in line with the better loss outlook, which ultimately supported sustainable rate relief for policyholders.”
Guy Carpenter observed that its ongoing hurricane claims studies show significant differences in claims behaviour between storms that occurred before and after Florida’s 2022 and 2023 civil litigation reforms, noting that Hurricane Milton in 2024 resulted in 69% fewer claims and 74% lower claim severity than Hurricane Irma in 2017.
Looking ahead, the firm’s report concluded that although forecasts point to a relatively mild 2026 Atlantic hurricane season, elevated sea surface temperatures in the Gulf and Caribbean still leave the US exposed to the risk of severe storms and significant property damage.
