Florida Insurance Commissioner Mike Yaworsky said on Jan. 28 that the Office of Insurance Regulation continues approving auto insurance rate decreases for policyholders following legislative reforms in 2023.
The changes are significant for Florida residents, as they have led to lower insurance costs and increased market stability. According to a Perryman Group analysis, property and casualty insurance costs in Florida are 14.5 percent lower than they would have been without the 2022 and 2023 tort reforms. The analysis also found an estimated $4.2 billion increase in business activity and the creation of more than 29,000 jobs statewide, with families having more resources available for other household needs, as reported by Insurance Journal.
Yaworsky said, “Going into the new year, the Office of Insurance Regulation is not slowing down on approving rate decreases or 0 percent increases from insurance companies. USAA is just one of many auto insurance companies that OIR is having great conversations with to ensure reductions for policyholders. We are thrilled with the progress in the home and auto insurance market since the critical legislative reforms were passed. It is very clear that tort reform was the right thing to do and we will continue to build on this success,” according to statements published by the Florida Office of Insurance Regulation.
The Florida Office of Insurance Regulation announced that USAA will implement an average 7 percent rate decrease on auto policies effective by May 2026, projected to generate more than $125 million in annual savings for its Florida members. The commissioner noted ongoing discussions with multiple insurers for similar reductions. Over the past year, forty-two companies covering personal auto lines filed for rate decreases, with thirty-two occurring in the last six months, according to the Florida Office of Insurance Regulation.
Florida personal auto insurers recorded the nation’s fifth-lowest incurred loss ratio at 57.5 percent in 2024 based on state data. The personal auto liability loss ratio reached 53.3 percent—first in the country and marking a fifteen-year low for Florida—while auto physical damage loss ratios dropped from 112 percent in 2022 to 66.7 percent currently. Regulators attribute these shifts to reforms rebalancing the civil justice system, according to data from the Florida Office of Insurance Regulation.
Seventeen additional insurance companies have entered Florida’s market since these reforms took effect. Regulators received over 185 filing requests for homeowners’ rate decreases or no increases; currently, the thirty-day average request stands at negative 2.3 percent compared to positive 0.5 percent a year earlier, supporting lower premiums for residents as reported by the Florida Office of Insurance Regulation.
