Jeff Brandes, president of the Florida Policy Project, said that the state's insurance market stabilized following the enactment of tort reform and cautioned that reversing these reforms would be detrimental. Brandes made this statement in a post on X on March 14.
"Florida's insurance market was on the brink—until lawmakers took bold action," said Brandes. "Lawsuit abuse was curbed, reforms took hold, and the market is stabilizing. Now, some want to reverse course. That would be a disaster. Florida must not follow California's path into crisis."
In response to an impending insurance crisis characterized by increasing premiums and insurer withdrawals, Florida implemented significant reforms aimed at stabilizing its market. These measures addressed legal system abuses by curbing predatory lawsuits and eliminating one-way attorney fees, which had previously positioned Florida as a litigation hotspot. Consequently, the state's insurance market began to recover, with a noticeable decrease in lawsuit filings and a substantial shift of policies from the state-backed insurer, Citizens Property Insurance Corporation, back into the private sector. In contrast, California's stringent regulations have led to insurers exiting the market, leaving homeowners with fewer options and higher premiums.
According to state representatives Hillary Cassel and Paula Stark, they are advancing HB 1551 to establish a "loser pays" standard for attorney’s fees in insurance lawsuits. This bill aims to level the playing field for policyholders. The House Insurance and Banking Subcommittee passed it with a 15-1 vote; Rep. Mike Caruso was the lone dissenter. Caruso argued that this bill could result in higher costs for consumers rather than reducing premiums. He referenced Governor Ron DeSantis’ recent announcement that previous insurance reforms have stabilized the market and attracted insurers. The Personal Insurance Federation of Florida and the Florida Chamber of Commerce also expressed concerns about HB 1551 potentially reigniting excessive litigation and driving up premiums.
March 24 marked two years since Governor Ron DeSantis signed Florida's tort reform law, HB 837. This legislation targeted excessive litigation that had increased homeowners’ insurance rates and caused insurer failures. Before these 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.
Florida Insurance Commissioner Mike Yaworsky highlighted achievements by the Florida Office of Insurance Regulation (OIR) in a January press release. Yaworsky said: "Thanks to reforms championed by Governor Ron DeSantis, Florida’s insurance industry is improving." The agency has made significant progress in stabilizing the property insurance market and strengthening the state’s health insurance sector. Reforms aimed at protecting consumers and improving market conditions have delivered tangible results. OIR has worked to ensure greater industry accountability and resilience against future challenges.
Jeff Brandes is a former Florida state senator known for his independent policy-making and advocacy for free-market principles, emerging technologies, and property insurance reform. A U.S. Army veteran, he also championed prison reform and public safety improvements. Since leaving office, he founded the Florida Policy Project, a nonpartisan organization focused on housing affordability, insurance, criminal justice, and transportation policy.