Latest enchancment in Florida’s insurance coverage market – fostered by laws concentrating on authorized system abuse – is threatened by a number of payments proposed within the state’s 2025 legislative session.
Florida’s property insurance coverage market has stabilized because of reforms launched in 2022 and 2023 geared toward decreasing extreme litigation and inflated claims. On account of these reforms, the variety of insurers writing enterprise within the state has rebounded after a multi-year exodus. This competitors has allowed policyholders to go away Residents Property Insurance coverage Corp. – the state-run insurer of final resort – to acquire protection at charges that have been beforehand unavailable.
In keeping with the Florida Chamber of Commerce, key payments threatening policyholders’ financial savings embrace:
- H.B. 451/SB 554, which might reintroduce litigation incentives;
- H.B. 947/SB 1520, which might remove transparency necessities for medical prices in court docket;
- H.B. 1437/SB 1840, which might reinstate lawyer payment awards in auto insurance coverage instances; and
- H.B. 1551/SB 426, which might carry again lawyer charges for property insurance coverage lawsuits that have been eradicated in 2022.
Earlier than current reforms, Florida owners paid premiums as much as thrice the nationwide common. For the reason that reforms, 60 p.c of the highest 10 nationwide insurers writing owners insurance coverage in Florida have expanded their enterprise over the previous yr, and 40 p.c of all insurers working within the state filed for price decreases in 2024, in keeping with Florida Insurance coverage Commissioner Michael Yaworksy.
As Triple-I CEO Sean Kevelighan not too long ago put it, “Residents of the Sunshine State are actually clearly seeing the advantages of a extra secure and reasonably priced insurance coverage market.”
The brand new laws would cut back and even reverse that progress.
Study Extra:
Florida Reforms Bear Fruit as Premium Charges Stabilize
Florida’s Progress in Authorized Reform: A Mannequin for 2025
How Georgia May Study From Florida Reforms
Resilience Investments Paid Off in Florida Throughout Hurricane Milton
Florida Householders Premium Progress Slows as Reforms Take Maintain, Inflation Cools
Louisiana’s Insurance coverage Woes Worsen as Florida Works to Repair Its Issues
