The property insurance market in Florida has shown substantial improvement due to legislative reforms aimed at curbing legal system abuse, according to the American Property Casualty Insurance Association (APCIA). These reforms, enacted two years ago, have led to stabilizing rates and a growing number of insurers entering the market. Now, as other states like Georgia observe Florida’s progress, they are following suit with their own legal reforms to address rising insurance costs and improve their legal climate.
A recent statewide survey commissioned by APCIA reveals that a significant majority of Floridians support these reforms. When informed of the measures taken, 77% of residents agree that limiting excessive lawsuits and legal abuses was a crucial step in stabilizing the state’s property insurance market. This public backing comes on the heels of the Florida insurance commissioner’s announcement that a 12th new insurer has entered the marketplace since the reforms were implemented.
The trend toward stability is further reflected in homeowner insurance rates. Florida experienced the lowest average increase in homeowners’ insurance rates in the nation in 2024, with a modest rise of just 1%. Additionally, the Florida Office of Insurance Regulation (OIR) reports that the average rate request has dropped significantly, from 21.8% two years ago to just 0.8% today. In 2024 alone, 19 companies filed for rate decreases, while 37 companies sought no increase at all.
Despite these positive signs, lawmakers in Tallahassee are considering new proposals that could reverse the progress made. Several bills currently under consideration could reopen avenues for litigation and reintroduce one-way attorney fees, a practice that had previously contributed to the legal system abuses affecting the insurance market. These proposals are being advanced amid claims from media outlets about insurer profitability and concerns over claims handling.
However, the data tells a different story. Florida’s insurers faced nearly eight years of unprofitability through 2023, largely due to rampant legal abuses stemming from the state’s one-way attorney fee statute. Additionally, the OIR has conducted a thorough review of claims closed without payment after recent storms. Enhanced reporting showed that the primary reasons for claims being closed without payment were either damage falling below the policy deductible or damage caused by flooding, which is typically excluded from standard coverage.
APCIA also highlights that the insurance industry remains highly regulated, with insurers fully supporting the role of the state regulator in overseeing market conduct and ensuring consumer protection. Insurers are committed to fulfilling their obligations to policyholders, especially when disaster strikes. According to APCIA’s survey, 75% of homeowners and 77% of auto insurance claimants who filed a claim in the last two years expressed satisfaction with the outcome of their claims, and 75% believed their insurer treated them fairly.
As the Florida Legislature debates potential changes in the final weeks of the session, APCIA urges lawmakers to maintain the current reforms, which have already demonstrated positive effects on both the property insurance market and the broader economic landscape. If the progress is preserved, consumers can continue to benefit from improved market conditions and more competitive coverage options.
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