December 4, 2024
Christian Cámara
Introduction
Two years after the Florida Legislature took bold steps in attacking the root causes of the state’s property insurance crisis, there are signs that the market is stabilizing despite a pair of active hurricane seasons. New insurers have entered the market, capital investment is on the rise, litigation is on the decline, and insurance rates have stabilized and even decreased in some cases. Despite these positive developments, consumers are still feeling the sting of rates far above those in comparable states and insecurity as it relates to the availability of coverage following a series of costly hurricane strikes.
As a newly elected Legislature convenes for the 2025 regular legislative session, it will undoubtedly face pressure to do more to address the justified concerns of Florida consumers. Indeed, lawmakers should take their constituents’ concerns to heart, but also be clear about where things stand today as opposed to a couple of years ago when insurance rates were dramatically increasing, competition was decreasing, and losses due to uncontrolled litigation were fleecing the industry and triggering downgrades and insolvencies.
The following pages will revisit the issues that plagued the Florida insurance market that were allowed to spiral into a full-blown crisis just a few years ago, how the bold reforms enacted in recent years successfully stabilized the market, and why the Legislature should resist any political pressure to dilute or otherwise weaken these reforms.
Read “Progress in Motion: Florida’s Insurance Reforms Gaining Momentum” here.
