Jerry Theodorou, director of the Finance, Insurance and Policy Program at the R Street Institute, said that Florida’s tort reforms have contributed to lowering insurance rates. He warned that reversing these reforms to appease the trial bar would be detrimental to both consumers and insurers.
“Florida’s recently passed tort reform measures are under attack,” said Theodorou, Director of Finance, Insurance and Trade Policy. “The 2021-2023 reforms were exactly what was needed to enhance insurance availability and the affordability of homeowners’ insurance in Florida. Tangible evidence of their success includes reductions in insurance rates and the number of lawsuits brought against insurers. Following passage of the reforms, the plaintiff bar has actively attempted to undo tort reform legislation. Floridians cannot afford a return to the past. Instead, consumer-friendly policies, such as continuation of Florida-style tort reform and greater transparency, should be upheld as a win-win for insurance buyers, insurance providers, and economies in Florida.”
Florida’s tort reform measures from 2021 to 2023 have reportedly stabilized the state’s homeowners’ insurance market by reducing frivolous litigation and improving legal standards for negligence claims. These reforms resulted in fewer lawsuits, slower rate increases, attracted new insurers, and led to an underwriting profit for the first time in years. However, legislation supported by the trial bar now threatens this progress by potentially reintroducing practices like assignment of benefits and inflated damage claims. Maintaining current reforms and promoting transparency in flood history and insurance rate comparisons are seen as crucial for preserving Florida’s insurance market stability.
According to a Federalist article, Florida Speaker Daniel Perez backed legislation that would roll back tort reform measures championed by Governor Ron DeSantis. Perez supported HB 1551 and SB 947, which increased insurance costs and attorney fees while reopening opportunities for significant legal payouts to trial lawyers. Public testimony suggested these changes benefit trial lawyers and reverse efforts made to control lawsuit abuse in Florida. A Senate analysis concluded that these bills could raise insurance premiums for residents. Perez’s support aligns with interests from which he has received substantial political contributions, potentially undermining DeSantis-era reforms.
InsuranceBusiness.com reported that a Florida House panel advanced HB 1551, a bill aimed at restoring policyholders’ ability to recover attorney fees if they win lawsuits against insurers. This partially reverses major tort reforms passed in recent years. The bill was introduced by Rep. Hillary Cassel with intentions of balancing discouragement of frivolous lawsuits while protecting consumers from bad-faith insurance practices. Industry advocates warn this measure could destabilize Florida’s fragile insurance market; however, supporters argue it restores fairness in disputes with insurers.
On February 5th, Governor DeSantis issued a press release announcing improvements in Florida’s insurance market. Major auto insurers such as GEICO, Progressive, and State Farm have filed for rate reductions ranging from 6% to 10.5%. 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.
Theodorou is noted as an advocate for free-market policy solutions at R Street Institute and has testified before multiple congressional committees on insurance issues.
