Matthew Lavisky, a partner at Butler Legal, said that although Florida has not yet fully experienced the impact of recent insurance reforms, there are already significant improvements in the market. The statement was made in a press release on March 18.
“Florida has not yet had time to experience the full effect of the reforms, but there already are very real improvements to the insurance market,” said Lavisky. “Senate Bill 2A eliminated attorney’s fees in property insurance litigation. This was a necessary reform. House Bill 1551 brings back the old law with all of its consequences. Sometimes, a bill comes clad in sheep’s clothing. But to borrow words from Justice Scalia, ‘this wolf comes as a wolf.'”
In December 2022, Florida enacted Senate Bill 2A, introducing comprehensive reforms aimed at stabilizing the state’s property insurance market. According to the Florida Senate, these reforms included reducing the deadline for policyholders to report claims and implementing prompt pay laws to expedite claim resolutions. These measures were designed to address challenges faced by both insurers and policyholders in the aftermath of recent hurricanes.
Following the implementation of Senate Bill 2A, Florida’s insurance market has shown signs of stabilization. The Florida Office of Insurance Regulation reported in August 2023 that these reforms have created additional opportunities for insurers to operate within the state. This development indicates a positive shift towards a more competitive and stable insurance environment.
The reforms introduced by Senate Bill 2A have led to a decrease in the number of policies held by Citizens Property Insurance Corporation, Florida’s insurer of last resort. As of May 2024, Citizens’ policy count had dropped to 1.19 million from a peak of 1.41 million in September 2023. This reduction suggests that more homeowners are finding coverage in the private insurance market, reflecting increased market stability.
Lavisky is a partner at Butler Weihmuller Katz Craig LLP, specializing in insurance defense and complex litigation. According to his firm profile, he has extensive experience representing insurers in disputes involving coverage issues, bad faith claims, and appellate matters. He has been actively involved in discussions on insurance reform and has published articles analyzing the impact of legislative changes on the industry.
