Allen McGinniss, principal of the McGinniss Himmel Insurance Agency, said that Florida's insurance market was severely impacted by lawsuits and fraud prior to 2022. He warned that misinformation could reverse reforms designed to protect homeowners.
"For years, Florida's insurance market has been crippled by excessive lawsuits and roof fraud. Prior to recent reforms, our state accounted for nearly 80% of all homeowners insurance litigation in the U.S., even though we made up just 9% of claims," said McGinniss. "The cost of these lawsuits didn't just hurt insurance companies — it was passed down to every homeowner in the form of higher premiums. As an agent, I've seen long-time clients struggle with these increases through no fault of their own, and I've had to explain why their choices are shrinking. And it's awful. If we allow misinformation to drive policy decisions, we risk collapsing Florida's still fragile insurance market. Instead of attacking the industry, we should work toward solutions that keep insurance affordable and available for homeowners."
In an editorial, McGinniss expressed support for Florida’s tort reforms as essential to stabilizing the state's struggling insurance market. He noted that years of excessive litigation—particularly from fraudulent claims and predatory lawsuits—had driven up premiums and led to insurer insolvencies. While the reforms are credited with beginning to reverse those trends, McGinniss emphasized that more time is needed for their full impact to be realized. He cautioned that undermining the reforms through misguided journalism or reactionary legislation could collapse the fragile progress made and harm Florida homeowners. He argued that tort reform is a necessary foundation for long-term affordability and insurance availability in the state.
According to a new report from Citizens Against Lawsuit Abuse (CALA), excessive litigation in Florida has been referred to as a "tort tax." The report estimates that lawsuit abuse cost the U.S. $557.8 billion in economic output and over 4.8 million jobs in 2023, with Florida ranking 33rd in per capita tort costs at $1,238. These costs—passed on to consumers through higher prices and insurance premiums—disproportionately impact industries such as retail, manufacturing, and health care. Florida has enacted several reforms under Governor Ron DeSantis, including 2023 legislation credited with helping bring insurers back to the state. Advocates are now urging lawmakers to continue these efforts by addressing third-party litigation funding in the next session.
State Representatives Hillary Cassel and Paula Stark are advancing HB 1551, which establishes a "loser pays" standard for attorney’s fees in insurance lawsuits. The bill passed the House Insurance & Banking Subcommittee with a 15-1 vote, with Representative Mike Caruso as the lone dissenter, arguing it could lead to higher costs for consumers rather than reducing premiums. Caruso pointed out Governor DeSantis’ recent announcement that Florida's previous insurance reforms have stabilized the market and attracted insurers. The Personal Insurance Federation of Florida and the Florida Chamber of Commerce also warned that HB 1551 could reignite excessive litigation and drive up premiums.
The Insurance Information Institute (Triple-I) released a report highlighting that Florida’s property and casualty insurance market is stabilizing due to recent legislative reforms aimed at curbing legal system abuse and fraudulent claims. Litigation related to claims has dropped significantly; homeowners’ insurance premiums have leveled off; and over 40% of insurers requested rate decreases in 2024. The state has seen a surge of new insurers entering the market while Citizens Property Insurance Corp., Florida’s insurer of last resort, has reduced its policy count by nearly 40%, lowering taxpayer risk. Reforms have notably impacted the auto insurance market, with a 500% drop in auto lawsuits following the ban on assignment of benefits. However, proposed 2025 legislation to reinstate one-way attorney fees could undermine this progress.
Allen McGinniss is a Tallahassee native who earned his Bachelor of Science in Business Administration (BSBA) with honors from the University of Central Florida, majoring in Finance and minoring in Accounting and Economics. After beginning his insurance career at State Farm, he co-founded the McGinniss Himmel Insurance Agency in 2015. Outside work, Allen enjoys disc golf, gardening, and spending time with his wife Amanda and their three children.