Michael Yaworsky, Florida's insurance commissioner, said that a rate reduction indicates growing market stability, with litigation down 30%, demonstrating that reforms are effective. He made this statement during a press conference on February 5.
"The rate reduction that the Governor announced today is really the latest sign in a long list of signs of market stability that is emerging throughout our state. We're truly seeing good news on every front," said Yaworsky. "We're seeing litigation rates decrease upwards of 30% throughout the state, so the reforms are working. And as we move forward, as the Governor said, we're not stopping there. The office - in conjunction with other state agencies, are thinking of other ways to improve the market further."
According to Yaworsky, in a January 8 press release, the Florida Office of Insurance Regulation (OIR) achieved significant progress over the past year. Reforms supported by Governor Ron DeSantis have shown improvements in Florida’s insurance industry. The agency has worked towards stabilizing the property insurance market and strengthening the state’s health insurance sector. These reforms aim to protect consumers and improve market conditions, yielding tangible results with OIR ensuring greater industry accountability and resilience against future challenges.
On February 5, Governor DeSantis issued a press release announcing substantial improvements in the state’s insurance market. Major auto insurers such as GEICO, Progressive, and State Farm have filed for rate reductions of 10.5%, 8.1%, and 6%, respectively. 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, enhancing competition and market stability.
A January 16 editorial in the Wall Street Journal compared California and Florida's approaches to managing their home insurance markets. It noted that California's Democratic insurance commissioners have long suppressed rates, leading to market distortions and reduced coverage availability. In contrast, Florida implemented reforms addressing similar issues resulting in a more stable environment. The editorial suggested California could benefit from adopting strategies similar to those of Florida.
According to a February 18 post on InsuranceRateReporter.com, a survey by the American Property Casualty Insurance Association (APCIA) and Munich Re US found that plaintiff lawyer tactics like third-party litigation funding (TPLF) and jury anchoring contribute significantly to rising insurance costs, impacting the U.S. economy by an estimated $529 billion. The survey revealed that 69% of Americans believe these practices increase premiums while 86% support legal reforms to address them; however, many respondents remain unaware of these tactics.
Yaworsky was appointed as Florida Insurance Commissioner in March 2023 by Governor DeSantis and the Financial Services Commission. Before this role, he served as Vice Chairman of the Florida Gaming Control Commission and as Chief of Staff for OIR from 2017 to 2021 where he helped oversee regulatory operations and policy implementation in the state’s insurance market.