Helen Aguirre Ferré, former executive director of the Florida Republican Party, said that litigation abuse is a significant factor in driving up costs, with 76% of Florida homeowners’ claims in 2019 resulting in lawsuits, which led to higher premiums.
“The connection between litigation abuse and affordability is clear,” said Aguirre Ferré. “In 2019 about 8% of U.S. homeowners’ claims were filed in FL of which 76% became lawsuits. Every time a billboard attorney won another jackpot premiums went up.”
In a Wall Street Journal op-ed, Florida House Speaker Paul Renner discussed recent tort reforms and their impact on stabilizing the state’s insurance market. He explained that prior to these reforms, the system was burdened by litigation abuse as attorneys exploited loopholes to file excessive or fraudulent claims. Renner indicated that such practices resulted in skyrocketing premiums and drove insurers out of the state, leaving homeowners with limited options and increased costs. The reforms have curtailed these abuses, leading to a more stable market and attracting new insurers back to Florida. He noted that trial lawyers oppose these changes not due to consumer concerns but because they have lost lucrative legal fees.
On February 5, Florida Governor Ron DeSantis issued a press release announcing significant improvements in the state’s insurance market. Major auto insurers like GEICO, Progressive, and State Farm have filed for rate reductions of 10.5%, 8.1%, and 6%, respectively. Citizens Property Insurance is also implementing premium decreases averaging 5.6% statewide, benefiting approximately 75% of homeowners in Miami-Dade County. Over the past two years, eleven new insurance companies have entered the Florida market, enhancing competition and stability.
Florida State Representatives Hillary Cassel and Paula Stark are promoting HB 1551, which establishes a “loser pays” standard for attorney’s fees in insurance lawsuits to level the playing field for policyholders. The bill passed the House Insurance and Banking Subcommittee with a 15-1 vote; Representative Mike Caruso was the lone dissenter. Caruso argued that the bill could lead to higher costs for consumers rather than reducing premiums. He cited Governor DeSantis’ recent announcement regarding stabilized markets and attracted insurers as evidence against it. The Personal Insurance Federation of Florida and the Florida Chamber of Commerce warned that HB 1551 might reignite excessive litigation and increase premiums.
In a January 8 press release, Florida Insurance Commissioner Mike Yaworsky highlighted achievements by the Florida Office of Insurance Regulation (OIR). Yaworsky said that thanks to reforms championed by Governor DeSantis, Florida’s insurance industry is improving significantly. The agency has made progress in stabilizing the property insurance market and strengthening the health insurance sector through reforms aimed at protecting consumers and improving market conditions.
Helen Aguirre Ferré is an experienced communications strategist and public policy expert with extensive experience in politics and media. She has served as Director of Communications for Governor Ron DeSantis, White House Director of Media Affairs, and Director of Hispanic Communications for the Republican National Committee (RNC). Aguirre Ferré has held leadership roles across various media outlets including TV, radio, and print.
