Triple-I: Florida’s P/C Market Stabilizing Due to Legislative Reforms that Curbed Legal System Abuse Practices of Billboard Attorneys

Business Wire

JACKSONVILLE, Fla.--(BUSINESS WIRE)--
Florida’s legislative reforms to address legal system abuse and claim fraud are stabilizing the state’s property/casualty insurance market, according to a new Issues Brief published by the Insurance Information Institute (Triple-I), an affiliate of The Institutes.

Claims-related litigation has significantly declined in the Sunshine State over the past two years, and home insurance average premiums are nearly flat, with 40% of home insurers requesting rate decreases from the state’s insurance regulator in 2024. Eleven new property insurers have entered the market and six of the top 10 national insurers writing residential policies in Florida grew their market share in 2024, Triple-I’s Issues Brief noted.

“While it took some time to get through the massive amounts of litigation fueled by billboard attorneys just before reform was passed, 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. “With such visible progress being made it is important that the reforms remain, so Floridians no longer fall victim to the legal system abuse of the past such as assignment of benefits claim fraud schemes.”

Home Premium Rate Growth Slowing

The impact of the 2022 and 2023 reforms can be seen in premium rate changes, particularly with respect to property insurance. Homeowners rates in Florida grew at a much slower rate in 2024, even as rate growth continued to accelerate nationally. S&P Global Market Intelligence recently reported that Florida’s average rate filing of 1% in 2024 was the lowest in the U.S., with more than 30 states experiencing double-digit average rate increases last year.

Citizens Successfully Depopulating

After Citizens Property Insurance Corp., the state-backed insurer of last resort, reached a peak of 1.4 million policies in force (PIF) in September 2023, depopulation has reduced its PIF by nearly 40% to under 850,000 customers as of Feb. 28, 2025. The financial improvement of the private market has enabled Citizens to track toward a much more manageable level of risk, reducing the probability of a “hurricane tax” due to a shortfall to pay storm claims, according to Triple-I.

Improving Auto Market

Legislative reform is also having a significant impact on the state’s private passenger auto market. Several national auto writers plan to file for Florida rate decreases in 2025 due to a 500% year-over-year decline in auto glass claim lawsuits in 2024 after assignment of benefits for this generator of fraudulent claims was banned.

Staying the Course

As the Florida Legislature begins its 2025 session today, there is concern over bills filed in the state’s Senate and House that would allow one-way attorney fees to be awarded for certain types of claim litigation. This would be a reversal of previous reforms that eliminated these fees.

“Despite continuing market and political pressures, Florida policyholders and taxpayers stand to benefit tremendously from the 2022 and 2023 legislation. Given the pain of recent years and the continuing perils in this catastrophe-prone state, it’s important for all stakeholders to support continued reform,” Triple-I’s Issues Brief concluded.

About Insurance Information Institute (Triple-I)

With more than 50 insurance company members — including regional, super-regional, national and global carriers — the Insurance Information Institute (Triple-I) is the #1 online source for insurance information in the U.S. The organization’s website, blog and social media channels offer a wealth of data-driven research studies, white papers, videos, articles, infographics, and other resources solely dedicated to explaining insurance and enhancing knowledge.

Unlike other sources, Triple-I’s sole focus is creating and disseminating information to empower consumers. It neither lobbies nor sells insurance. Triple-I offers objective, fact-based information about insurance – information that is rooted in economic and actuarial soundness. Triple-I is affiliated with The Institutes.

About the Institutes

The Institutes are a global not-for-profit comprising diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes’ nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting and preventing losses to create a more resilient world.