Parker Evans, president and chief investment strategist at Successful Portfolios, has indicated that Florida’s 1% rise in homeowners insurance premiums for 2024—the lowest in the nation—suggests recent reforms are proving effective.
“In 2024, Florida homeowners’ insurance premiums increased by 1% on average, the lowest rate of increase in the U.S,” said Evans.
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 said that prior to these reforms, Florida’s insurance system suffered from litigation abuse, particularly by attorneys exploiting loopholes to file excessive or fraudulent claims. He said these practices resulted in skyrocketing premiums and drove insurers out of the state, leaving homeowners with fewer options and higher costs. The reforms have curtailed these abuses, leading to a more stable market and attracting new insurers back to Florida. Trial lawyers oppose these changes because they’ve lost lucrative legal fees, not out of concern for consumers.
On February 5, Florida Governor Ron DeSantis issued a press release announcing significant improvements in the state’s insurance market. Major auto insurers including GEICO, Progressive, and State Farm have filed for rate reductions of 10.5%, 8.1%, and 6%, respectively. Citizens Property Insurance is also implementing average premium decreases of 5.6% statewide, benefiting about 75% of homeowners in Miami-Dade County. Over the past two years, eleven new insurance companies have entered the Florida market, increasing competition and contributing to market 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—a move intended to level the playing field for policyholders. The bill passed the House Insurance and Banking Subcommittee with a 15-1 vote; Representative Mike Caruso was the lone dissenter, arguing it could lead to higher costs for consumers rather than reducing premiums. Caruso pointed to 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 expressed concerns that HB 1551 could reignite excessive litigation and drive up premiums.
Florida Insurance Commissioner Mike Yaworsky highlighted a year of accomplishments by the Florida Office of Insurance Regulation (OIR) in a January 8 press release. Yaworsky credited reforms championed by Governor DeSantis for improvements in Florida’s insurance industry. The agency made significant progress in stabilizing the property insurance market and strengthening the health insurance sector. Reforms aimed at protecting consumers and improving market conditions have delivered tangible results. OIR has also worked to ensure greater industry accountability and resilience against future challenges.
Evans is the founder of Successful Portfolios and a licensed Investment Advisor Representative with over three decades of experience in wealth management. He previously served as President of First Discount Securities and held leadership roles at First Union, Smith Barney, and Fifth Third Private Bank.
