Florida Sees 30% Drop in Property Litigation After Tort Reforms
Florida's tort reforms, including House Bill 837, have led to a 30% drop in property insurance litigation, easing legal costs for insurers. Reciprocal insurers, where policyholders share financial risks, saw improved financial performance and reduced legal expenses. The changes are helping stabilize Florida’s insurance market.
Florida's recent tort reforms are beginning to reshape the state's property insurance landscape, with litigation rates dropping 30% since the measures took effect.
The Florida Office of Insurance Regulation confirmed the decline, attributing it largely to House Bill 837, which limits one-way attorney fees and reduces incentives for excessive legal action. These changes have particularly benefited reciprocal insurers, where policyholders share in the financial risks.
According to the Florida Senate Banking and Insurance Committee, some reciprocals saw more than 15% savings in loss adjustment expenses, with improved underwriting results and fewer contested claims. AM Best also noted better combined ratios among Florida reciprocals in 2024, with many moving from losses to breakeven or slightly profitable positions.
While broader impacts on policyholders and premium rates remain to be seen, the data signals that tort reform is helping stabilize Florida’s troubled insurance market—at least for now.
