APCIA: Report From the Florida Office of Insurance Regulation Further Demonstrates Litigation Problem in the State

TALLAHASSEE, Florida, Jan. 11 (TNSres) -- The American Property Casualty Insurance Association issued the following news release:

The American Property Casualty Insurance Association (APCIA) today released the following statement, attributed to Logan McFaddin, vice president of state government relations for APCIA, regarding the Florida Office of Insurance Regulation's Residential Property Claims and Litigation Report.

"The Florida Office of Insurance Regulation's (OIR) report clearly demonstrates litigation has been an outsized problem in the state. According to OIR, Florida accounted for 14.9% percent of nationwide claims, but had 70.9% of the nation's litigation in 2022. The report also shows that in 2022, more than 58,000 property claims were litigated in Florida. Other states typically have only hundreds of such cases annually. According to studies by the Institute for Legal Reform, legal system abuse in Florida is costing consumers $5,065 per household - one of the worst in the nation.

"While certain parts of Florida undoubtedly have experienced more litigation and resulting abuses, litigation remains a statewide problem. The legal system abuse reforms enacted by the legislature and governor will help all consumers and businesses statewide.

"The legal system abuse reforms are already having a positive impact on Florida's property insurance market. In 2023, six additional insurance companies entered the market and OIR approved more than 650,000 Citizens policies to be assumed by insurers, representing a more than 800 percent increase over the previous year. OIR also just announced an existing company is growing its footprint in the state, investing more than $1.25 billion of capital in Florida's property casualty insurance market.

"Over time, consumers should start to see the benefit through improved availability and affordability of insurance. It is important to remember that right before the 2023 reforms went into effect, a staggering 280,000-plus lawsuits were filed by trial lawyers. It will take time for this wave of litigation to wash through the system. In the meantime, the reforms must be given time to work."

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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REPORT: https://www.floir.com/docs-sf/default-source/property-and-casualty/other-property-casualty-reports/january-2024-pclr.pdf?sfvrsn=d8c92a4f_4

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Original text here: https://www.apci.org/media/news-releases/release/78512/