Triple-I: Proposed Florida legislation could reverse progress on legal system abuse

By Mia MacGregor

March 13 - (The Insurer) - Recent improvements in Florida’s insurance market, driven by legislation aimed at curbing legal system abuse, are at risk due to several bills proposed for the state’s 2025 legislative session, according to the Insurance Information Institute.

The number of insurers writing business in Florida has rebounded following years of market instability, thanks to reforms introduced in 2022 and 2023 that sought to reduce excessive litigation and inflated claims, the organisation, also known as Triple-I, reported in a blog post.

Triple-I noted that the increased competition has allowed policyholders to leave Citizens Property Insurance Corp, the state-run insurer of last resort, and secure coverage at rates that were previously unavailable.

According to the Florida Chamber of Commerce, key bills threatening policyholders’ savings include: HB 451/SB 554, which would reintroduce litigation incentives; HB 947/SB 1520, which would eliminate transparency requirements for medical costs in court; HB 1437/SB 1840, which would reinstate attorney fee awards in auto insurance cases; and HB 1551/SB 426, which would bring back attorney fees for property insurance lawsuits that were eliminated in 2022.

Before these reforms, Florida homeowners paid premiums up to three times the national average.

Since then, 60% of the top 10 national insurers writing homeowners insurance in Florida have expanded their business, and 40% of all insurers operating in the state have filed for rate decreases in 2024, according to Florida Insurance Commissioner Michael Yaworsky.

“Citizens of the Sunshine State are now clearly seeing the benefits of a more stable and affordable insurance marketplace,” said Triple-I CEO Sean Kevelighan.

Triple-I warned that the proposed legislation could slow or even reverse this progress, potentially driving insurers away from the market once again.