Sean Kevelighan, CEO of the Insurance Information Institute (Triple-I), said that Florida’s tort reforms have effectively addressed the primary factors contributing to legal system abuse. These reforms have resulted in stable or reduced insurance rates and the return of 11 insurers to the market, offering a potential model for other states.
“We find that legal system abuse is driven by four major areas: Plaintiff advertising of the outsized verdicts that lawyers can win their clients; fraudulent or unnecessary litigation; the erosion of caps on damages that have led to ‘nuclear verdicts’; and third party litigation funding or financing,” said Kevelighan, President and CEO. “Plaintiff’s bar associations have been fighting to make public policy that erodes some of the caps that you would have associated with a claim. The effect [of FL’s tort reform] has been decisive: Two years later, rates in Florida are flat. Some insurers have even decreased rates and 11 insurers have come back into the market. That bodes well for other states where reform is evolving.”
States across the United States are developing tort reform legislation to combat legal system abuse, which has significantly increased insurance claim costs over the past decade. According to studies by Triple-I 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 to 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.
A recent poll conducted by Cherry Communications for the Florida Chamber of Commerce indicates that Governor Ron DeSantis holds a 54% approval rating while former President Donald Trump stands at 51%. Nearly half of Floridians believe the state is on the right track. The poll also reveals strong public support for Florida’s 2023 tort reform laws, with only 15% considering them excessive and a plurality favoring stricter measures against lawsuit abuse. The survey included 605 likely voters and has a margin of error of four percentage points.
In a press release, William Large, President of the Florida Justice Reform Institute, said that efforts by trial lawyers to reverse Governor DeSantis’ tort reforms were politically motivated attempts to deter other states from adopting similar measures. The Florida Senate rejected legislation sponsored by trial lawyers aiming to roll back these reforms; consequently, the bill was withdrawn. DeSantis had pledged to veto any legislation undermining these reforms credited with stabilizing Florida’s insurance market. Insurance Commissioner Michael Yaworsky warned that proposed changes backed by trial lawyers would encourage excessive litigation.
On February 5th, Governor DeSantis announced improvements in Florida’s insurance market through a press release. Major auto insurers like GEICO, Progressive, and State Farm have filed for rate reductions ranging from 6% to 10.5%. Citizens Property Insurance is also implementing premium decreases averaging 5.6% statewide. Over two years, 11 new insurance companies have entered Florida’s market.
Kevelighan has been CEO of Triple-I since August 2016 and previously held senior roles at Zurich Insurance Group and Citigroup. He also served in various capacities within the George W. Bush administration.
