Travis Miller, a founding shareholder and insurance lawyer at Radey Law, said that the Florida insurance market began to improve only after the 2022 reforms. He noted that earlier laws, such as those proposed in HB 832, did not succeed in reducing lawsuits and rising premiums.
“The new provisions of HB 832 are similar to laws adopted prior to 2022 that were intended to improve the market. Unfortunately, those efforts proved ineffective in stemming the rise in lawsuits, escalating losses and loss adjustment expenses, increased premiums and reduced options for policyholders,” said Miller, Founding Shareholder and former President. “Conditions in the Florida market began to improve only following the legislature’s more comprehensive reform effort in a December 2022 special session. The Florida Office of Insurance Regulation showed that while prior to the reforms this state had among the highest percentage rate increases in the country, Florida had the lowest percentage increase last year. Existing insurers have increased their appetites for new business and OIR has approved a dozen new insurers to begin writing in Florida. This has led to increased options for policyholders, a reduction in Citizens’ policy count and greater overall stability in the market than just a few years ago. The anti-reform amendments to SB 832 are consistent with approaches the House has taken throughout the session.”
According to an April 27 blog post from Radey Law Firm, the Florida House passed an amended version of SB 832. This includes a “prevailing party” attorneys’ fee provision, raising concerns among regulators and insurers about potentially reversing recent market gains. The amendment mirrors pre-2022 laws that failed to reduce litigation, contributing to higher premiums and insurer losses. In contrast, comprehensive reforms in 2022 have led to notable market improvements, including lower rate increases and more options for policyholders. The Florida Office of Insurance Regulation credits these reforms with recent market stability but warns that changes like those in HB 832 could undermine progress.
In an April 16 op-ed, Brewster Bevis, CEO of the Associated Industries of Florida, expressed concern over efforts in the Florida Legislature to roll back tort reforms. He argued that before the reforms passed in 2022 and 2023, Florida faced frivolous lawsuits and inflated damage claims that increased insurance costs for consumers. Bevis warned that new proposals would allow personal injury lawyers to regain access to inflated profits by reopening litigation loopholes. These changes would reverse consumer savings and increase premiums.
Florida State Representatives Hillary Cassel and Paula Stark are advancing HB 1551, which establishes a “loser pays” standard for attorney’s fees in insurance lawsuits. The bill passed the House Insurance & Banking Subcommittee with a vote of 15-1. Representative Mike Caruso was the sole dissenter, arguing it could lead to higher costs for consumers instead of reducing premiums. Caruso pointed out Governor Ron DeSantis’ announcement regarding stabilized markets due to prior insurance reforms.
The Insurance Information Institute (Triple-I) released a report indicating stabilization in Florida’s property and casualty insurance market due to legislative reforms aimed at curbing legal system abuse and fraudulent claims. Litigation related to claims has significantly dropped, homeowners’ insurance premiums have leveled off, and over 40% of insurers requested rate decreases for 2024. Citizens Property Insurance Corp., Florida’s insurer of last resort, has reduced its policy count by nearly 40%, lowering taxpayer risk.
Travis Miller is recognized as a leading attorney specializing in insurance regulatory law at Radey Law Firm. He advises insurers on regulatory compliance and legislative changes while contributing to advancing insurance education through Florida State University’s risk management program.
