Aon announced that reinsurers responded to improved performance in Florida's property insurance market during mid-year renewals by offering moderate price reductions and more flexible terms.
According to Aon's July 2025 Reinsurance Market Dynamics report, Florida's property insurance market entered the mid-year renewals on a much sounder footing. This was attributed to legal reforms, stronger building codes, and disciplined underwriting that restored insurer confidence. These improvements led to moderate price reductions and more flexible reinsurance terms, with risk-adjusted rate reductions averaging in the high single digits. Such favorable conditions support the stability and operational effectiveness of reciprocal insurance exchanges in Florida, as reciprocals benefit from increased market competition and reinsurance capacity, enabling them to offer broader coverage to policyholders.
As reported by Insurance Journal, Aon noted that a composite group of 50 Florida insurers posted a net income of $402 million for Q1 2025, nearly 50% of the entire 2024 total. The median combined ratio improved from 92.9% at year-end 2024 to 76.7% in Q1 2025, signaling greater underwriting profitability. For reciprocal insurance exchanges, which pool policyholder premiums and share results among members, such strong market data can result in larger surpluses and enhanced financial stability. Aon also reported policyholder surplus rose $476.9 million, or 6.8%, providing reciprocals with greater resources to return value or expand coverage.
According to Aon's July 2025 Reinsurance Market Dynamics report, Florida's Citizens Property Insurance Corporation transferred over 428,000 policies to private insurers during 2024. This resulted in a policy count decline to about 809,000 as of April 2025, down from a peak of 1.4 million in September 2023. Aon explains that this depopulation reflects a stronger private insurance sector, increased reinsurer participation, and a more competitive market. Such conditions create opportunities for reciprocal insurance exchanges to grow membership as improved private market stability allows reciprocals to compete effectively and expand offerings for policyholders.
Aon plc is a leading global professional services firm dedicated to helping clients make better decisions in the areas of risk capital and human capital. It serves over 120 countries with approximately 50,000 employees. Aon's capabilities span broking, risk transfer, claims management, reinsurance, analytics, benefits, investments, and talent with industry expertise covering sectors from financial services and real estate to life sciences and technology.