APCIA Says Floridians Agree: Insurance Litigation Changes Are Working. Don’t Undo

Florida’s property insurance market is an example of the powerful impact that strong legislative reforms can have in addressing a crisis. Other states, like Georgia, have seen the benefits of Florida’s legal system abuse reforms and are following suit with their own reform packages to improve their state’s legal climate and address rising insurance costs.

Since Florida’s governor and Legislature passed historic legal system abuse reforms two years ago, rates are stabilizing and more companies are entering the marketplace to offer coverage. According to a recently commissioned statewide survey by APCIA,three out of four Floridians (77%) agree, when informed on the issue, that Florida lawmakers made the right decision to limit excessive legal system abuse and frivolous lawsuits to help stabilize the state’s property insurance market.

The Florida insurance commissioner recently announced that another insurer is entering the marketplace to offer coverage, bringing the total number of new companies entering the market post-reforms to 12.

We continue to see positive trends in homeowners insurance rates in Florida. According to S&P Global, Florida had the lowest average statewide homeowners rate increase in the nation in 2024 at just 1 percent. The Florida Office of Insurance Regulation (OIR) reports that the 30-day average request for homeowners’ rates is 0.8%, compared to 21.8% two years ago. Since January 2024, 19 companies have filed for a rate decrease and 37 companies have requested no change or 0% increase.

There is also good news in the auto insurance market as several major auto insurers filed for recent rate reductions between 10% and 6%. Additionally, litigation related to auto glass repairs, which was a big cost driver in the auto insurance marketplace, has seen a dramatic decline, dropping from 24,720 lawsuits in the second quarter of 2023 to just 2,613 in the same period of 2024.

While some homeowners may still experience rate increases as the market continues to deal with elevated costs to repair and replace property, along with the high risk of damage from hurricanes, overall, the signs are positive – and most Floridians agree. According to APCIA’s survey, two out of three Floridians (67%) agree, when informed on the issue, that Florida’s property insurance market is showing signs of improvement following the reforms implemented by the Florida Legislature.

And yet, lawmakers in Tallahassee are considering several proposals that would undo the progress that has been made. Multiple bills in the Florida House would open new avenues for litigation and reinstate one-way attorney fees. These bills are being advanced amid sensationalized and misleading media reporting on industry profitability and claims-handling concerns.

The fact is this: Florida insurers experienced almost eight straight years of unprofitability through 2023 due to rampant legal system abuse, which was driven in large part by abuses of Florida’s one-way attorney fee statute.

The Florida Office of Insurance Regulation has also conducted an intense review of claims closed without payment following recent storms. OIR expanded the required reporting for insurers to show all reasons why a claim may be closed without payment. According to OIR, their enhanced data reporting does not support allegations of insurance companies refusing to pay valid claims. OIR found that the top reasons for claims closed without payment are: The claim damage was below the insurance policy’s deductible; or the claim was denied due to flood damage that is not covered by the insurance policy.

Insurance is one of the most highly regulated industries, and insurers support the important role of the state regulator in monitoring solvency and market conduct and ensuring consumers are protected during the claims process.

Insurers are deeply committed to fulfilling their promises to policyholders when disaster strikes. According to APCIA’s survey, of those Floridians who filed a home or auto insurance claim in the last two years, three out of four claimants are satisfied with the outcome of their insurance claim (75% of homeowners insurance claimants and 77% of auto insurance claimants). Additionally, three out of four claimants (75%)believe their insurance company treated them fairly regarding their insurance claim.

As the debate continues in Tallahassee in the final weeks of session, the facts should speak for themselves. Florida’s legal reforms are working, and the property insurance market is improving as rates stabilize and more companies enter the marketplace. If lawmakers hold the line on bills that undo progress, consumers will see the benefits as market conditions continue to improve.

Adam Shores is senior vice president of state government relations for APCIA, the American Property Casualty Insurance Association.

Topics Lawsuits