Sean Kevelighan, CEO of the Insurance Information Institute, said that Florida's legislative reforms have stabilized the state's insurance market by reducing litigation, slowing premium increases, and prompting insurers to request rate reductions.
"Florida's legislative reforms on claims fraud and legal system abuse have steadied the property/casualty #insurance market," said Kevelighan. "Claims-related litigation has fallen, premium rate growth has flattened, and insurers have requested rate decreases."
States across the United States are developing tort reform legislation to address legal system abuse, which has significantly increased insurance claim costs over the past decade. According to studies by the Insurance Information Institute (III) and the Casualty Actuarial Society, such abuse—driven by plaintiff advertising, erosion of damage caps, fraudulent litigation, and third-party litigation funding—has added billions in liability and auto insurance costs. Florida's 2023 tort reforms are credited with stabilizing rates and attracting insurers back to the state. New legislation aims to further limit inflated medical damages in lawsuits, with similar reforms underway in Georgia, South Carolina, Texas, Missouri, and Tennessee.
According to an Institute for Legal Reform report, Florida's recent legal reforms aimed at curbing lawsuit abuse and claim fraud are showing early signs of success. Key laws have eliminated one-way attorney fees, prohibited assignment of benefits (AOB), limited misleading legal ads, and introduced modified comparative fault. These measures have contributed to a 35% drop in property insurance lawsuits and improved insurer loss ratios. The reforms have stabilized the state's property insurance market and attracted billions in new capital. A bill targeting third-party litigation funding is continuing this momentum. Reversing these reforms would jeopardize market gains. Florida's success serves as a national model for legal reform that protects consumers and businesses while controlling insurance costs.
In a press release, Florida Justice Reform Institute President William Large said attempts by trial lawyers to roll back Governor Ron DeSantis' tort reforms were politically motivated efforts to discourage other states from adopting similar measures. The Florida Senate rejected trial lawyer-sponsored legislation to rollback the 2023 legal reforms, and the bill was ultimately withdrawn. DeSantis had also vowed to veto any legislation undermining the 2022–2023 reforms credited with stabilizing Florida’s insurance market. Insurance Commissioner Michael Yaworsky warned that proposed changes backed by trial lawyers would reverse progress by encouraging excessive litigation. Large emphasized that Florida’s 2023 tort reforms will continue serving as a national model.
On February 5th, Governor DeSantis issued a press release announcing significant improvements in Florida's insurance market. Statewide major auto insurers such as GEICO, Progressive, and State Farm have filed for rate reductions of 10.5%, 8.1%, and 6%, respectively. Additionally, Citizens Property Insurance is 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 contributing to increased competition and market stability.
Sean Kevelighan has been Chief Executive Officer of the Insurance Information Institute since August 2016. He previously held senior roles in public affairs and communications at Zurich Insurance Group, Citigroup, and several public affairs firms advising major corporations on policy and reputation management. Earlier in his career he served in the George W. Bush administration on Capitol Hill with key roles in the Treasury Department Office of Management Budget legislative director Congress.