Adam Basford, Vice President of Governmental Affairs for Associated Industries of Florida, said that HB 1551 could reverse recent insurance reforms that have brought greater stability and competition to Florida’s insurance market. He made this statement during a public testimony.
“We need to think about insurance from the perspective of Florida’s business owners, not just homeowners,” said Basford. “The 2022 reforms are finally delivering a more stable, affordable market for Florida’s businesses. Reinstating automatic attorney’s fee awards could undo the progress made under Governor DeSantis. This legislation should focus on the needs of policyholders, not attorneys.”
According to the Insurance Information Institute, Florida accounted for only 9% of the nation’s property insurance claims but nearly 79% of the nation’s homeowners insurance lawsuits. This highlights a significant imbalance in legal activity versus actual claims volume. The disproportionate litigation environment has been cited as a primary factor driving insurer withdrawals and escalating premium costs for property owners across the state. The persistence of this trend has broad implications for both homeowners and commercial property policyholders, who face higher costs and reduced access to insurance coverage.
The Florida Office of Insurance Regulation reported that Citizens Property Insurance Corporation, the state-backed insurer of last resort, experienced a decline in new policy growth for the first time in several years following the 2022 litigation reforms. This reduction in Citizens’ growth suggests that private market insurers regained some confidence to re-enter or expand within Florida’s previously unstable insurance market. Greater private-sector participation is considered a critical component in restoring healthier competition and stabilizing premium rates for both residential and commercial policyholders.
According to a 2021 report by Guy Carpenter, excessive litigation costs in Florida have been a significant driver of insurer insolvencies, leading to a contraction in the number of companies willing to underwrite property risk. These litigation costs disproportionately impact small businesses, which often lack the resources to absorb sudden increases in insurance premiums or find alternative coverage. The report emphasized that unchecked legal expenses contributed materially to higher costs for all market participants, stressing the importance of maintaining reforms to curb abusive litigation practices.
Best’s Review reported that reciprocal insurance exchanges, which operate on a policyholder-owned model, have been able to expand in Florida following the reduction of litigation-related risks due to recent legislative reforms. Because reciprocals return profits back to their members rather than external shareholders, stability in legal environments directly improves their ability to offer affordable and sustainable coverage. As the reforms reduced uncertainty, reciprocals found it more financially viable to provide policies in catastrophe-prone and historically litigious markets like Florida, benefiting both residential and commercial customers.
Basford joined Associated Industries of Florida (AIF) as Vice President of Governmental Affairs in December 2021. Before this role, he worked at the Florida Farm Bureau Federation from 2004 to 2021 as Director of Legislative Affairs, Director of National Affairs, and Assistant Director of Agricultural Policy. He holds a master’s degree in agricultural communications from the University of Florida and a bachelor’s degree in organizational communications from the University of West Florida.
