Citizens Leadership Credits Legislative Reforms for Market Recovery
Tim Cerio, President, CEO, and Executive Director of Citizens Property Insurance Corporation, remains highly optimistic about Florida’s property insurance industry rebound. He attributes the recovery to sweeping legislative reforms passed in 2022 that have reshaped the regulatory framework and revived industry confidence.
Cerio emphasized that the reforms are not only visible but transformational, allowing the company to return to its essential role as Florida’s insurer of last resort, ultimately reducing the risk of policyholder assessments.
“It is simply irrefutable that reforms supported by the Governor and passed by the Legislature have had a phenomenal impact on the development of this marketplace. The statistics bear it out,” Cerio stated.
Citizens Sees Private Insurers Return to Florida Market
One of the most evident signs of recovery is the re-entry and expansion of private insurers. Cerio noted that multiple new insurers are entering the Florida market while existing companies are broadening their footprint. This renewed competition, spurred by regulatory reform, has stabilized pricing—some even reducing rates.
Since 2024, six of the ten largest national insurers operating in Florida have expanded their portfolios, and four of them have filed for rate reductions. In total, 27 insurers filed for rate decreases, and 41 companies held premiums steady during this period.
Citizens Helps Achieve Rate Stability Across Florida
Supporting Cerio’s claim, Florida recorded the lowest average statewide insurance rate increase in 2024, with just a 1% rise. This figure stands out nationally, especially given the inflationary pressures and climate-related risks that have driven up rates in other states.
This stability reinforces the company’s role in helping to moderate the market and ensuring affordability for consumers.
Citizens Policy Count Drops as Market Conditions Improve
A significant indicator of market health is the declining number of policies held by Citizens. As of June 20, 2025, the company insured 777,592 policies—a 36% drop from the previous year and a 44.9% reduction from its October 2023 peak of 1.41 million.
As private carriers take on more risk, the company is returning to its original mission, reducing its exposure and helping balance Florida’s insurance landscape. Total exposure dropped by 43%, from $520.1 billion to $295.1 billion.
Citizens Depopulation Program Drives Shift to Private Sector
The Citizens Depopulation Program has proven essential in transferring risk from the public sector to approved private insurers. Since January 2024, 677,920 policies have been shifted to the private market under this initiative.
Overseen by the Florida Office of Insurance Regulation, the program ensures that only financially stable and vetted insurers take on these policies, protecting consumer interests and fostering a more diversified market.
Citizens Reports Significant Drop in Litigation Rates
Cerio also highlighted a positive decline in litigation involving the company. The company’s litigation rate dropped from 18.6% in 2018 to 10.6% by 2024. Additionally, pending lawsuits declined from 20,958 in 2022 to just 12,622 as of June 2025.
This suggests that reforms have helped reduce abusive or excessive claims practices and improved the overall claims resolution process.
Citizens Enhances Resilience with $4.49 Billion Risk Transfer
Citizens recently completed a $4.49 billion risk transfer program for the 2025 hurricane season. This major initiative, supported by insurance-linked securities (ILS) and collateralized reinsurance, reflects Citizens’ proactive approach to managing catastrophe risk.
By securing coverage through alternative capital markets, the company is reducing reliance on taxpayer support and strengthening its financial resilience in the face of extreme weather events.
Conclusion: Citizens Leads Florida’s Insurance Stabilization Efforts
Florida’s property insurance market continues on a path to recovery, with Citizens Property Insurance Corporation playing a key leadership role. Through legislative support, smart depopulation strategies, reduced litigation, and proactive risk transfer, Citizens is helping to reshape and stabilize one of the most volatile insurance markets in the nation.
If the current momentum is maintained, Florida could become a blueprint for how reform and collaboration between public and private sectors can reverse an insurance crisis.
