Florida’s E&S Market Hits $1.9B in Premium for May

Florida’s surplus lines insurance market continues to reflect signs of stabilization as we progress through the second quarter of 2025. The flattening trend observed in recent months remains consistent, underscored by a year-over-year premium decline of -6% for May. May closed with $1.9B in reported premium, a decrease from May 2024. Year-to-date premium through May reached $7.8B, reflecting a 0.6% decrease compared to the same period last year. This subtle shift continues to show a plateauing market.

MONTHLY PREMIUM BREAKDOWN

MONTHLY POLICY COUNT BREAKDOWN

*Percentage of change based on same reporting period in 2024 and 2025.

Despite the dip in premium volume, policy activity showed positive growth. May 2025 saw more than 151K policies filed—marking a 12% increase over the same period last year. This uptick in policy count, coupled with a decrease in the average cost per policy to $12,456 (down -16% year-over-year), points to a market where pricing is competitive and accessible.

PREMIUM | YoY COMPARISON

POLICY COUNT | YoY COMPARISON

FACTORS INFLUENCING THE MARKET

While month-to-month comparisons provide only a snapshot, recent figures appear consistent with broader patterns that began in late 2024 and have extended into 2025.

“These patterns may be influenced by a number of factors, including expanded carrier participation, recent tort reform measures, and continued progress in risk management practices,” said FSLSO Executive Director Mark Shealy. “The approval of six new carriers by the Florida Office of Insurance Regulation this year alone may signal growing confidence in the market’s direction. Taken together with May’s data, we’re seeing indications of a market environment that could be trending toward greater stability, more competitive pricing, and stronger reinsurance support.”

A LOOK AT THE LINES OF BUSINESS

May’s data continues to highlight subtle but meaningful shifts across key lines of business. While most lines saw declines in premium and average cost per policy, policy counts were up overall—suggesting a market that remains competitive and increasingly accessible to consumers.

Windstorm and/or Hail – Commercial held its spot as the sixth-ranked line despite posting a -42% year-over-year decrease in premium and a -47% drop in average cost per policy. Notably, policy count rose 10%, which could point to broader availability or greater demand for more affordable coverage options in this segment.

Commercial Property continues to outpace Commercial General Liability in policy count—a trend that began in the first quarter and has carried into May. Policy counts for Commercial Property were up 71% year-over-year, continuing to widen the growth rate gap between these two lines and reinforcing the shift in where businesses are placing their coverage emphasis.

Flood – Personal saw significant movement with a 68% increase in premium and a 78% rise in policy count, even as average policy cost dropped -5%. This spike could be tied to storm activity and disaster experiences over the past year. Reevaluation of current coverage could be encouraging policyholders to expand their policies to avoid coverage gaps. With early forecasts predicting an active hurricane season, this line is one to watch, as preparedness appears to be top of mind for many Floridians.

TOP 10 LINES OF BUSINESS | MAY

* NOTE: The YOY Percent of Change are calculated as a comparison between APRIL 2025 and APRIL 2024. Numbers may slightly differ from prior publications since historical stats are continually adjusted to reflect cancellations and backouts.

NEW BUSINESS AND RENEWALS | MAY 2024 vs MAY 2025

For May of 2025, Florida’s surplus lines market maintained a nearly identical distribution of new business versus renewals compared to the prior year. Renewals accounted for 58% of total policies, while new business comprised 42%. This consistent mix may suggest continued policyholder retention alongside stable, if not modest, new growth—reflecting the market’s broader trend toward stabilization.

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