The James Madison Institute (JMI) has released a new policy brief titled "Progress in Motion: Florida’s Insurance Reforms Gaining Momentum." Authored by JMI Senior Fellow Christian Cámara, the report examines recent developments in Florida's property insurance market following legislative reforms.
Two years ago, the Florida Legislature enacted measures to address the state's property insurance crisis. Since then, there have been signs of market stabilization despite active hurricane seasons. New insurers have entered the market, capital investment is increasing, litigation is declining, and insurance rates have stabilized or decreased in some cases. However, consumers continue to face high rates compared to other states and uncertainty about coverage availability after hurricanes.
As a newly-elected Florida Legislature begins its session, lawmakers are expected to face pressure to further address consumer concerns. The JMI report encourages legislators not to dilute reforms that are already having a positive impact less than a year after being enacted.
Doug Wheeler, Director of the George Gibbs Center for Economic Prosperity at JMI, stated: “Recent reforms by the Florida Legislature to address the critical issues affecting our property insurance market are gaining momentum. With more than 20 new insurers entering the market, nearly 400,000 Citizens policies shifted to these insurers, and the continued softening of reinsurance rates, it is clear these reforms are delivering expected results. As our court system continues to process the more than 280,000 lawsuits filed prior to these reforms taking effect and policy rate stabilization persists, we urge continued patience to allow the building momentum of these reforms to bring needed relief to Floridians.”
Christian R. Cámara added: “Floridians are reasonable enough to justify the higher costs associated with living in a tropical peninsula susceptible to storms and flooding. But for far too long, Florida’s property insurance market was allowed to be fleeced by uncontrolled litigation... Since then, we have seen costly litigation decrease... In short... it is incumbent on lawmakers to hold the line and resist any pressure.”
The James Madison Institute remains committed as a research organization focused on limited government and economic freedom.