Insurance markets are constantly changing. Pricing, availability and underwriting requirements are affected by losses, weather, rebuilding costs, litigation, reinsurance and the amount of capital available to insurers. Conditions can also vary considerably by location and type of insurance.
This quarterly update looks at current conditions in Florida and across the United States, and what they may mean for insurance buyers.
Florida Insurance Market
Florida’s property insurance market continues to show meaningful signs of improvement after years of rapidly rising premiums, reduced availability and insurer financial problems.
The private market has expanded, reinsurance conditions have improved, and the number of policies insured by Citizens Property Insurance Corporation has fallen dramatically. Citizens had approximately 255,000 policies in force in late September 2026, down from more than 1.4 million in late 2023. New insurers have entered Florida, while existing insurers have assumed hundreds of thousands of policies from Citizens.
Reinsurance, one of the largest expenses for Florida property insurers, has also become less costly and more readily available. Increased global reinsurance capacity and greater competition have helped reduce this important component of insurers’ costs. Citizens reported that its reinsurance rates dropped nearly 30% over the prior year.
There are signs of improvement in pricing as well. Citizens’ 2026 rates include an average statewide decrease of 8.8% for homeowners’ multiperil policies, although individual results vary considerably by location, policy type, and property characteristics.
These developments do not mean Florida has become an easy insurance market. Hurricane and other catastrophe exposure remains substantial, and insurers continue to scrutinize roof age, property condition, construction, location and wind mitigation. Coastal properties and other higher-risk properties can still face limited options, substantial windstorm deductibles and significant premiums.
For now, however, the direction of Florida’s property insurance market is considerably more favorable than it was several years ago.
U.S. Insurance Market
Nationally, the insurance market presents a mixed picture. Property insurance conditions have improved considerably, while several liability lines remain challenging.
Commercial property insurance has benefited from increased insurer capacity, competition and improving reinsurance conditions. Marsh reported that U.S. commercial property rates declined an average of 13% in the second quarter of 2026, the eighth consecutive quarter of decreases. Individual results still depend heavily on location, catastrophe exposure, loss history, property condition and the quality of the risk.
Liability insurance is moving in the opposite direction. Commercial auto, general liability and umbrella/excess liability continue to face pressure from increasing claim severity, large jury awards, litigation costs and broader legal trends often referred to as social inflation. U.S. casualty rates increased during the second quarter, with insurers remaining particularly concerned about claims severity and litigation.
Other areas of the market are more favorable. Workers’ compensation remains competitive and profitable for insurers, while cyber insurance continues to benefit from substantial insurer capacity and competition. U.S. cyber rates declined again during the second quarter of 2026.
The result is no longer a single “hard” or “soft” insurance market. An insurance buyer may see improved pricing on property or cyber coverage while facing increases in commercial auto or umbrella liability at the same renewal.
What This Means for Insurance Buyers
Improving market conditions create opportunities, but price should not be the only consideration.
When insurers compete more aggressively for business, it may be possible to improve coverage, reconsider deductibles, increase limits or address coverage gaps in addition to reducing premiums. At the same time, continuing pressure on liability insurance makes it increasingly important to review liability limits and understand where significant exposures exist.
Insurance remains only one part of managing risk. Property maintenance, catastrophe mitigation, workplace safety, contractual risk transfer, cybersecurity and other risk-control measures can reduce the likelihood or severity of a loss while also making a business or property more attractive to insurers.
Market conditions will continue to change. The goal should not simply be to find the lowest premium available today, but to use changing market conditions to build an insurance and risk-management program that provides appropriate protection over the long term.
This report provides a general overview of insurance market conditions as of Fall 2026. Insurance availability, pricing and coverage vary by insurer, location, type of risk and individual circumstances.
