Patrick Hedger, director of policy for NetChoice, said that Florida's insurance market was in such disarray that individuals resorted to stealing accident reports to file fraudulent claims. He commended Governor Ron DeSantis for implementing necessary tort reform to restore the system's integrity.
"[Florida's insurance market] was so bad at one point people were breaking into cop cars and stealing blank accident reports just to file claims," said Hedger. "Good for Governor DeSantis doing long-overdue tort reform."
According to a Wall Street Journal op-ed by Florida House Speaker Paul Renner, the state's recent tort reforms have begun stabilizing the insurance market. Renner noted that before these reforms, Florida's insurance system suffered from litigation abuse, with attorneys exploiting loopholes to file excessive or fraudulent claims. This led to soaring premiums and drove insurers out of the state, leaving homeowners with limited options and increased costs. The reforms have curtailed these abuses, resulting in a more stable market and attracting new insurers back to Florida. Renner said that trial lawyers oppose these changes due to lost legal fees rather than consumer concerns.
On February 5, Governor Ron DeSantis issued a press release announcing significant 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 stability.
Florida State Representatives Hillary Cassel and Paula Stark are advancing HB 1551, which establishes a "loser pays" standard for attorney’s fees in insurance lawsuits. This move aims to level the playing field for policyholders. The bill passed the House Insurance and Banking Subcommittee with a 15-1 vote; Rep. Mike Caruso was the lone dissenter, arguing it could increase costs for consumers instead of reducing premiums. Caruso referred to Governor DeSantis’ recent announcement that previous insurance reforms had stabilized the market and attracted insurers. The Personal Insurance Federation of Florida and the Florida Chamber of Commerce expressed concerns that HB 1551 could reignite excessive litigation and drive up premiums.
Florida Insurance Commissioner Mike Yaworsky highlighted achievements by the Florida Office of Insurance Regulation (OIR) in a January 8 press release. Yaworsky credited reforms championed by Governor DeSantis for improving Florida’s insurance industry. The agency has made significant progress in stabilizing the property insurance market and strengthening the state’s health insurance sector while ensuring greater industry accountability and resilience against future challenges.
Patrick Hedger serves as Director of Policy at NetChoice, focusing on antitrust, free speech, data privacy, and economic policy issues.