Floridians for Lawsuit Reform has announced that expert analyses warn third-party litigation funding could increase national insurance costs by up to $50 billion over the next five years. The organization is urging safeguards beyond transparency to protect consumers.
According to the Florida Office of Insurance Regulation (OIR), 2024 rate filings showed the first slight downward trend in years for property insurance, with multiple insurers submitting zero-increase filings and at least eight filing decreases. This early stabilization is attributed to the 2022–2023 reform package. OIR’s update explicitly ties the improving conditions to legislative changes targeting litigation cost drivers in the market. Gallagher Re reported that post-reform property claim lawsuits in Florida have fallen back toward 2019 levels, indicating that curbs on fee multipliers, Assignment of Benefits (AOB) abuses, and other litigation incentives have begun to reduce frequency.
The Insurance Information Institute (III) reports that Florida’s top five auto insurance groups moved to cut personal-auto rates by an average of 6.5% statewide in 2025 following reforms aimed at legal system abuse and AOB fraud. The Florida Office of Insurance Regulation separately announced the same aggregate reduction across those top writers, noting a swing from an average +31.7% change in 2023 to a projected −6.5% in 2025. These rate actions align with III's context that 2023 reforms brought down rates and continue to exert downward pressure as litigation volumes fall.
According to the U.S. Government Accountability Office (GAO), third-party litigation financing involves nonrecourse funding by outside investors in exchange for an interest in lawsuit recoveries, and the market is characterized by limited transparency and sparse aggregate data. Building on that structural assessment, Insurance Business reported that an Ernst & Young analysis estimates TPLF could add up to $50 billion to U.S. insurance industry costs over the next five years—roughly a 4%–5.2% drag on annual loss ratios—if current trends persist. Additional coverage in Carrier Management notes EY’s modeling also shows a potential $25 billion five-year impact specifically on commercial insurers, underscoring the scale of potential pass-through costs to policyholders.
According to its official X profile, Floridians for Lawsuit Reform is a 501(c)(4) organization formed by Floridians advocating for lawsuit reform, with messaging focused on lowering consumer costs linked to litigation and promoting a fair, transparent civil justice system. The group’s website amplifies campaigns asserting that frivolous lawsuits and excessive fees contribute to higher insurance rates for residents. Public posts emphasize preserving the 2023 reforms and advancing additional safeguards seen as protecting consumers and the state’s economy.