Sean Kevelighan, CEO of the Insurance Information Institute (Triple-I), said that Florida residents are now witnessing the benefits of a more stable insurance market. He emphasized the importance of maintaining tort reforms to prevent a resurgence of legal system abuse. Kevelighan made this statement in a March 4 press release.
"While it took some time to get through the massive amounts of litigation fueled by billboard attorneys just before reform was passed, citizens of the Sunshine State are now clearly seeing the benefits of a more stable and affordable insurance marketplace," said Kevelighan. "With such visible progress being made it is important that the reforms remain, so Floridians no longer fall victim to the legal system abuse of the past such as assignment of benefits claim fraud schemes. Despite continuing market and political pressures, Florida policyholders and taxpayers stand to benefit tremendously from the 2022 and 2023 legislation. Given the pain of recent years and the continuing perils in this catastrophe-prone state, it's important for all stakeholders to support continued reform."
According to the Insurance Information Institute, Florida's property and casualty insurance market is showing signs of stabilization due to reforms targeting legal system abuse and fraudulent claims. The report indicates a significant reduction in litigation related to claims, stabilization of homeowners' insurance premiums, and over 40% of insurers requesting rate decreases for 2024. Additionally, new insurers have entered the market, while Citizens Property Insurance Corp., Florida’s insurer of last resort, has reduced its policy count by nearly 40%, thereby decreasing taxpayer risk. Reforms have also impacted the auto insurance market positively, with a 500% drop in auto glass lawsuits following the ban on assignment of benefits. However, proposed legislation for 2025 that seeks to reinstate one-way attorney fees could potentially undermine these advancements.
Florida State Representatives Hillary Cassel and Paula Stark are promoting HB 1551, a bill that proposes a "loser pays" standard for attorney’s fees in insurance lawsuits to create fairness for policyholders. The bill passed the House Insurance and Banking Subcommittee with a 15-1 vote; Rep. Mike Caruso was the sole dissenter. Caruso argued that this bill might increase consumer costs rather than lower premiums, referencing Governor Ron DeSantis' recent statement about how previous insurance reforms have stabilized the market and attracted insurers. Both the Personal Insurance Federation of Florida and the Florida Chamber of Commerce expressed concerns that HB 1551 could lead to excessive litigation and increased premiums.
March 24 marked two years since Governor Ron DeSantis signed Florida's tort reform law, HB 837, which aimed at curbing excessive litigation that had previously inflated homeowners' insurance rates and caused insurer failures. Before these reforms, Florida accounted for only 8% of national homeowners’ insurance claims but held a disproportionate share of lawsuits. Supporters credit HB 837 with reducing frivolous lawsuits and contributing to stabilizing the state's insurance market.
Florida Insurance Commissioner Mike Yaworsky highlighted achievements by the Florida Office of Insurance Regulation (OIR) in a January 8 press release. Yaworsky said that thanks to reforms championed by Governor Ron DeSantis, improvements have been seen in Florida’s insurance industry. The agency has made significant progress in stabilizing both property and health insurance markets through reforms aimed at protecting consumers and improving market conditions.
Sean Kevelighan serves as Chief Executive Officer of the Insurance Information Institute since August 2016. His previous roles include senior positions in public affairs and communications at Zurich Insurance Group, Citigroup, as well as advisory roles for major corporations on policy and reputation management during his tenure at various public affairs firms. Earlier in his career, Kevelighan worked within the George W. Bush administration and on Capitol Hill with key positions in the Treasury Department, Office of Management and Budget, and as a legislative director in Congress.