Mark Friedlander, Director of Corporate Communications for the Insurance Information Institute (III), said there are "early signs" that Florida's recent legal reforms are making a difference, reducing lawsuits and improving market conditions. Friedlander shared his statement via the III's email on January 23.
"Legislative reforms have vastly improved Florida's property insurance market," said Friedlander. "Any efforts to roll back the reforms previously passed would have a negative impact."
In the email, Friedlander said that at the Florida Chamber of Commerce Annual Insurance Summit, industry leaders noted that the 2022 and 2023 legal reforms have helped stabilize property insurance rates and improve insurer loss ratios. Many policyholders have seen rate stabilization or slight decreases, while the market continues to recover from years of excessive litigation and fraud.
According to the U.S. Chamber's website, Georgia's tort costs in 2022 reached nearly $20 billion, representing 2.6% of the state's GDP and averaging $5,050 per household. This financial burden is further compounded by an average annual tort cost growth rate of 10.6% between 2016 and 2022, which outpaced the national average. These rising costs contribute to higher insurance premiums and create economic strain on Georgia residents.
FLGov reports that Florida's recent legal reforms have contributed to the stabilization of insurance rates. Major insurers like GEICO, Progressive, and State Farm have filed for rate reductions of 10.5%, 8.1%, and 6%, respectively. Additionally, lawsuits related to auto glass repairs have dramatically decreased from 24,720 in the second quarter of 2023 to just 2,613 in the same period of 2024.
According to ATRA's website, Florida has been removed from the Judicial Hellholes list and designated as a "Point of Light" by the American Tort Reform Association after implementing significant legal reforms that have improved its civil justice system.