ALIRT Reports Divergent Property Market Performance in Four High-Risk U.S. States
A new bi-annual report from ALIRT Insurance Research highlights significant differences in property insurance market conditions across California, Florida, Louisiana, and Texas. Despite overall improvements in the national homeowners insurance underwriting results—reaching a $17 billion profit in 2025—the study reveals ongoing challenges for states with higher exposure to catastrophic events. California remains the most challenging due to escalating wildfire losses, particularly after massive damages from early-2025 fires. The state's FAIR Plan saw premium growth near $2 billion and imposed a $1 billion assessment on insurers in response. In contrast, Florida has seen significant improvement following reforms starting in 2022, with its Citizens Property Insurance Corporation at record low participation levels. Louisiana is recovering from storm-related losses between 2020-2021 but still faces challenges despite regulatory and legal reforms. Texas remains relatively stable overall, though residual market exposure is rising primarily along the coast.
Topics: FAIR Plans property insurance residual markets wildfires