On March 5, Jerry Theodorou, Finance & Insurance Policy Director for the R Street Institute, said that two years after tort reform in Florida, abusive litigation has decreased by 40%, homeowners insurance rates have dropped by 5.6%, and new insurers have entered the state, revitalizing the market.
“March 24 will mark two years since Republican Florida Governor Ron DeSantis signed tort reform measures into law,” said Theodorou, Director of Finance, Insurance and Trade Policy. “One statistic is enough to tell the story: although Florida is home to only eight percent of the country’s homeowners’ insurance claims, prior to the reforms it was home to 76 percent of the entire nation’s homeowners’ insurance lawsuits, according to Mark Wilson, president and CEO of the Florida Chamber of Commerce. The facts and data are compelling – out-of-control litigation is down by more than 40 percent, homeowners’ insurance rates are down an average 5.6 percent statewide, and more than ten new insurers were approved to enter the market. These developments represent a sea change from more than 2 years ago, when the Florida insurance market was on life support.”
March 24 marks two years since Governor Ron DeSantis signed Florida’s tort reform law, HB 837. The legislation aimed to address excessive litigation, which had driven up homeowners’ insurance rates and led to insurer failures. Before the reforms, Florida accounted for only 8% of the nation’s homeowners’ insurance claims but a disproportionate share of lawsuits. Supporters credit HB 837 with reducing frivolous lawsuits and stabilizing the insurance market.
According to the Consumer Choice Center, a consumer advocacy group, Florida’s HB 837 has significantly impacted the state’s reputation as a litigious hotspot. Their policy primer highlights benefits such as stabilized insurance rates, increased transparency, and fewer frivolous lawsuits. They believe the legislation has positively affected everyday Floridians.
On February 5, Florida Governor Ron DeSantis issued a press release announcing significant improvements in Florida’s insurance market. Statewide, major auto insurers such as GEICO, Progressive, and State Farm have filed for rate reductions of 10.5%, 8.1%, and 6%, respectively. Additionally, Citizens Property Insurance is implementing premium decreases averaging 5.6% statewide.
Florida Insurance Commissioner Mike Yaworsky highlighted achievements by the Florida Office of Insurance Regulation (OIR) in a January 8 press release. Yaworsky said that thanks to reforms championed by Governor DeSantis, Florida’s insurance industry is improving. The agency made significant progress in stabilizing the property insurance market and strengthening the state’s health insurance sector.
Theodorou is also known for his role as Director of the Finance, Insurance, and Trade Policy Program at R Street Institute. He advocates for free-market policy solutions and has testified before multiple congressional committees on insurance issues.
