Triple-I Weblog | Florida Payments Would Reverse Progress on Pricey Authorized System Abuse


Latest enchancment in Florida’s insurance coverage market – fostered by laws focusing on authorized system abuse – is threatened by a number of payments proposed within the state’s 2025 legislative session.

Florida’s property insurance coverage market has stabilized because of reforms launched in 2022 and 2023 geared toward lowering extreme litigation and inflated claims. Because of these reforms, the variety of insurers writing enterprise within the state has rebounded after a multi-year exodus. This competitors has allowed policyholders to go away Residents Property Insurance coverage Corp. – the state-run insurer of final resort – to acquire protection at charges that have been beforehand unavailable.

In line with the Florida Chamber of Commerce, key payments threatening policyholders’ financial savings embody:

  • H.B. 451/SB 554, which might reintroduce litigation incentives;
  • H.B. 947/SB 1520, which might remove transparency necessities for medical prices in court docket;
  • H.B. 1437/SB 1840, which might reinstate legal professional charge awards in auto insurance coverage circumstances; and
  • H.B. 1551/SB 426, which might convey again legal professional charges for property insurance coverage lawsuits that have been eradicated in 2022.

Earlier than latest reforms, Florida owners paid premiums as much as 3 times the nationwide common. Because the reforms, 60 % of the highest 10 nationwide insurers writing owners insurance coverage in Florida have expanded their enterprise over the previous yr, and 40 % of all insurers working within the state filed for price decreases in 2024, based on Florida Insurance coverage Commissioner Michael Yaworksy.

As Triple-I CEO Sean Kevelighan not too long ago put it, “Residents of the Sunshine State at the moment are clearly seeing the advantages of a extra steady and inexpensive insurance coverage market.”

The brand new laws would scale back and even reverse that progress.

Study Extra:

Florida Reforms Bear Fruit as Premium Charges Stabilize 

Florida’s Progress in Authorized Reform: A Mannequin for 2025

How Georgia Would possibly Study From Florida Reforms

Resilience Investments Paid Off in Florida Throughout Hurricane Milton

Florida Owners Premium Progress Slows as Reforms Take Maintain, Inflation Cools

Louisiana’s Insurance coverage Woes Worsen as Florida Works to Repair Its Issues

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