A new report from Marsh’s Guy Carpenter finds that legal reform, greater construction resilience and disciplined underwriting have helped restore capital and confidence in Florida’s real estate market, with risk-adjusted real estate catastrophe pricing generally down 15% – 20% across multiple tiers at June renewals and reinsurance capacity for Florida customers increasing by more than 12% from a year ago.
The global risk and reinsurance expert explained that Florida-based insurers renewed their reinsurance programs on June 1, 2026, with generally favorable results driven by significantly stronger balance sheets, improved underwriting performance and continued investor interest in Florida risks.
Guy Carpenter’s report adds: “Florida’s property insurance market has strengthened since landmark legal reforms in December 2022, with domestic underwriters’ combined ratio reaching 77% by 2025.
“This was helped by a mild hurricane season, which saw the first tropical storm in a decade not make landfall. Policyholder surpluses grew by about 45% at the end of 2025, allowing many insurers to retain more risk and negotiate improved reinsurance terms at renewal in 2026.”
As mentioned previously, risk-adjusted real estate catastrophe pricing has generally declined in the -15% to -20% range at many levels as reinsurers have expanded their interest in add-on points.
The report added: “The quota share market also showed significant improvement, with carriers securing additional catastrophe and aggregate quotas and increasing carve-out commissions, reflecting confidence in improving performance prospects.”
Guy Carpenter’s Florida clients reportedly received more than 12% more reinsurance capacity during the June renewal period than last year.
Additionally, more than $3.2 billion in new Florida catastrophe bonds have been issued so far in 2026 to 12 sponsors, including 3 new sponsors.
Florida Division Chief Guy Carpenter Randy Fuller commented: “Florida’s real estate market is on significantly stronger footing. Legal reform, improvements in building resiliency, and rigorous underwriting have combined to restore capital and confidence.
“This recovery is evident in the way insurers and reinsurers are handling June renewals; more available capacity, improved terms, changes in pricing consistent with better loss prospects, which ultimately supports sustainable rate relief for policyholders.”
Guy Carpenter observed that his ongoing hurricane claims research shows significant differences in claims behavior between storms occurring before and after Florida’s 2022 and 2023 civil litigation reforms, noting that compared to Hurricane Irma in 2017, Hurricane Milton in 2024 saw a 69% reduction in the number of claims and a 74% reduction in claim severity.
Looking ahead, the company’s report concluded that despite forecasts for a relatively mild 2026 Atlantic hurricane season, rising sea surface temperatures in the Gulf of Mexico and Caribbean still put the United States at risk for severe storms and significant property damage.