The Insurance Information Institute (III) has announced that Florida’s recent legal reforms aim to reduce frivolous lawsuits, stabilize insurance rates, and improve fairness in liability cases. These reforms have already led to fewer lawsuits and reduced rates for policyholders, as highlighted in an email sent on January 23.
According to the email, Florida’s property insurance reforms enacted in 2022 and 2023 have resulted in a significant decrease in property claims lawsuits, stabilized or slightly reduced rates for policyholders, and attracted billions in new capital investment. Industry leaders are urging lawmakers to maintain these reforms through 2025.
NewsBreak reports that since the implementation of Florida’s 2022 property insurance reforms, there has been a 58.8% decline in lawsuits from 67,788 cases in 2021 to 27,923 cases during the first three quarters of 2024. The repeal of “one-way attorney fees” has contributed to reducing excessive litigation and stabilizing insurance rates for many policyholders. However, these changes have also made it more challenging for policyholders to contest denied or underpaid claims.
Excessive litigation has notably contributed to rising auto insurance costs. Third-party litigation funding (TPLF) is yielding over 20% returns for investors and adding billions in excess losses. This situation has prompted insurers to increase premiums for commercial auto policies, according to Reinsurance News.
The Insurance Information Institute states on its website that it provides objective, data-driven resources aimed at educating consumers about insurance. Supported by over 50 member companies, the III focuses solely on empowering informed decision-making without engaging in lobbying or selling insurance.
