Floridians for Lawsuit Reform has announced findings from a Swiss Re report, which identifies shifting jury perspectives, aggressive legal advertising, and investor-funded lawsuits as factors contributing to record "nuclear" verdicts and rising insurance costs. The report also highlights recent reform gains in Florida.
According to Floridians for Lawsuit Reform's post on X, the Swiss Re report indicates that public sentiment toward litigation has shifted significantly over the past decade. Currently, only 56% of Americans believe there are too many lawsuits, compared to 90% in 2016. This change is attributed to the normalization of legal advertising and investor-backed lawsuits. The organization notes that states with heavy billboard advertising, such as Florida, have seen sharp increases in litigation volume and settlement demands, emphasizing the need for transparency and reform in legal funding practices.
Swiss Re’s 2024 report titled "The High Price of Litigation Funding" describes third-party litigation funding (TPLF) as a rapidly growing financial sector that has become a "shadow market" affecting case outcomes and costs across the United States. The report found that investor-funded lawsuits often extend case timelines by up to 40% and can inflate total settlement values by 20–30%, directly contributing to rising insurance premiums. Monica Ningen, CEO of P&C Reinsurance U.S. at Swiss Re, said in the report that these rising liability costs translate into higher consumer costs, from insurance premiums to goods prices.
Reuters reports that globally, investor-backed lawsuits have surged, with the litigation finance industry surpassing $17 billion in assets under management as of 2024. Hedge funds and private equity firms increasingly view lawsuits as high-yield investment opportunities; however, these arrangements often reduce transparency for defendants and juries. In Florida, such funding has been linked to inflated damages and prolonged settlements, prompting lawmakers to propose stronger disclosure requirements similar to those outlined in Senate Bill 1276 earlier this year.
Insurance Journal explains that Florida’s 2023 tort reform law (HB 837) has begun reducing excessive litigation by addressing attorney fee multipliers, limiting one-way attorney fees, and eliminating assignment-of-benefits abuse. Since these reforms took effect, Florida has seen a measurable drop in new filings and stabilization of insurance rates, reversing years of rapid premium growth. Analysts cited in the report say Florida’s early progress demonstrates how targeted legal reform can enhance fairness for both insurers and policyholders while discouraging exploitative litigation practices.
According to its official website, Floridians for Lawsuit Reform is a nonpartisan advocacy group committed to improving Florida’s legal system through transparency, accountability, and fairness. It aims to advance legislative and judicial reforms that curb lawsuit abuse, reduce consumer costs, and encourage economic growth across the state. The group's mission is to create a fair civil justice system benefiting everyone—from families to small businesses.