The Wall Street Journal stated in a June 9 opinion from its editorial board that factors including excessive litigation have driven up insurance costs for policyholders. However, tort reform measures enacted by Governor Ron DeSantis are helping the state’s insurance market to stabilize.
"Gov. Ron DeSantis's legal reforms in 2022 are helping to stabilize Florida's market after numerous insurers exited," said the editorial board. "Florida experienced the second smallest increase in homeowner premiums during the first three months of this year, though its rates are still nearly 40% higher than the U.S. average. Don't blame hurricanes alone."
According to the Wall Street Journal, car insurance rates have risen 46.2% nationwide since January 2020. While some politicians attribute rising insurance costs to climate change and corporate greed, the actual causes are a combination of inflation and lawsuit abuse. "Unscrupulous plaintiff attorneys" in Florida developed a "playbook" of filing numerous homeowners insurance lawsuits, which increased home insurance costs for residents. Floridian property and casualty insurers faced over 100,000 lawsuits in 2021 alone, claiming $7.8 billion in damages—more than three times the combined total of other states.
According to a May 17 press release from the Florida Office of Insurance Regulation (OIR), property insurance rate filings for 2024 are experiencing a downward trend for the first time in years. OIR attributed this stabilization to "historic legislative reforms" over recent years. Signs of market strengthening include ten companies filing for zero percent rate increases, eight companies filing rate decreases effective this year, and eight new companies being approved to enter the state’s homeowner’s insurance market.
In May 2023, DeSantis signed three bills aimed at strengthening the state’s insurance market and protecting consumers. Senate President Kathleen Passidomo said one of these bills, SB 7052, is "a strong and meaningful insurer accountability package that enhances consumer-friendly provisions of current law and increases transparency between homeowners and insurance companies." The other two bills, HB 799 and HB 881, expand mitigation discount programs for insurers and eligibility for the My Safe Florida Home Program. House Speaker Paul Renner stated that the legislation "not only empowers homeowners but also cultivates market-driven competition, ultimately leading to lower costs."
Another tort reform bill signed into law last year by DeSantis was HB 837, intended to decrease the number of "frivolous" lawsuits that drive up costs of goods and services. The reforms encompassed by HB 837 include eliminating attorney’s fee multipliers, standardizing medical damage calculations, and reducing the statute of limitations to two years for medical damages. "The vast majority of attorneys work very hard to provide sound legal representation for Floridians in these difficult circumstances," Passidomo said in a statement. "Unfortunately, there are a few bad actors who are in the business to draw out civil cases as long as possible, collecting more and more fees from insurance companies. Litigation drives up basic costs of goods and services for everyone across all areas of industry and commerce."