Consumer Choice Center announced that it published a policy primer analyzing the positive impacts of Florida's HB 837, a 2023 law aimed at reducing frivolous litigation and lowering insurance costs. The announcement was made in a press release on March 24.
In March 2023, Florida Governor Ron DeSantis signed HB 837 into law, enacting comprehensive tort reform aimed at curbing frivolous lawsuits and stabilizing the insurance market. According to the R Street Institute, prior to this legislation, Florida accounted for 76% of the nation's homeowners' insurance lawsuits despite only having 8% of the claims, highlighting the state's litigious environment. The reforms introduced measures such as modifying comparative negligence standards and limiting certain types of damages to deter excessive litigation.
According to the Florida Office of Insurance Regulation, the number of insurance-related lawsuits in Florida peaked at 63,000 in 2021 but fell by 24% between the third quarter of 2023 and 2024. This significant decline indicates that the tort reform measures have effectively reduced frivolous litigation. Additionally, nine new insurance companies have entered the Florida market, reflecting renewed confidence in the state's legal and insurance environment.
DeSantis announced that Florida has the lowest average premium rate increase in the nation, with an average statewide rate hike of just 1%. Major companies such as GEICO, Progressive, and State Farm have filed for rate reductions of -10.5%, -8.1%, and -6%, respectively. These developments suggest that the tort reforms are contributing to more affordable insurance options for Florida residents.
The Consumer Choice Center is a global advocacy group representing consumers in over 100 countries. It focuses on promoting policies that enhance consumer choice, innovation, and free-market principles. The organization engages with policymakers, media, and other stakeholders to advocate for evidence-based regulations that benefit consumers.