Florida Insurance Guaranty Surcharge Ends Two Years Early
Florida’s “Florida Insurance Guaranty Association (FIGA) emergency assessment,” often shown on policies as a FIGA surcharge, is now scheduled to end two years earlier than originally planned.
What the surcharge was and when it started
After several insurers became insolvent, FIGA’s board approved a 1% emergency assessment (the “2023A” assessment) on March 31st, 2023 to fund claims from the liquidation of United Property & Casualty Insurance Company. The Florida Office of Insurance Regulation (OIR) then ordered companies to begin collecting this 1% from policyholders on most property and casualty policies, with the first assessment year running on policies effective October 1st, 2023 through September 30th, 2024, and continuing in later years until related bonds were repaid.
How and when it is ending
In February 2026, FIGA announced that the multi‑year 1% emergency assessment (2023A) will conclude on September 30th, 2026. FIGA has directed insurers that new and renewal policies with effective dates on or after October 1st, 2026 must no longer include the 1% FIGA assessment line item. While FIGA will still reconcile and true up premiums through February 2028 on prior effective policies, consumers will stop being charged the surcharge on policies starting October 1st, 2026.
Why this decision was made
FIGA explained that stronger market conditions and lower than expected losses allowed it to retire the assessment earlier than the original multi‑year schedule tied to the 2023A bond issue. A quiet 2025 hurricane season, the absence of new major insolvencies, and 2022 legislative reforms curbing excessive litigation all contributed to faster stabilization of FIGA’s finances. As a result, ending the assessment two years early is projected to save Florida policyholders roughly $650 million in charges that would otherwise have appeared on premiums through 2028.
