Press Releases

S⁠t⁠a⁠t⁠emen⁠t⁠ Release: JMI Releases New Repor⁠t⁠ on Insurance Reform

By: Logan Padgett / 2022

Logan Padgett


Press Releases



January 10, 2021


Logan Elizabeth Padgett

TALLAHASSEE, Fla. – The James Madison Institute (JMI) has released a new report entitled “Battening Down: Policy Reforms to Avoid a Florida Insurance Meltdown”  examining the rise in Florida’s insurance costs and detailing several recommendations on how to curtail this trend.

The report, written by Christian Cámara, a senior fellow at The James Madison Institute, outlines how insurance rate increases have stemmed from behavior by stakeholders exploiting vulnerabilities in the law, the meaningful steps the Florida Legislature has taken in recent years to combat the abuse, and how it can build upon those reforms to stabilize the insurance market and hopefully promote more investment, competition, and lower rates for consumers.

Underscoring the current issue is the fact that Florida accounts for only eight percent of insurance claims, but 76 percent of all insurance litigation nationwide. Only 8 percent of the $15 billion in insurance payouts since 2013 went to Florida policyholders and 92 percent to lawyers and other legal expenses. Lawmakers must take to tackle Florida’s current property and auto insurance problems.

“Florida’s pro-growth business environment, as well as its climate, and low taxes have propelled the state to new heights, but growth invariably brings growing pains. All of this combined with almost two decades of Florida’s property insurance market being plagued by excessive litigation and fraud has led to massive increases in insurance rate costs. The Legislature has taken great steps to curtail this rise, but more must be done to build on those reforms and shore up the market in the short-term to mitigate losses, slow the bleeding, and avoid additional insolvencies.”

– Sal Nuzzo, Vice President of Policy, The James Madison Institute

“Despite the efforts of policymakers over the past several years, Florida’s property insurance market is quickly nearing a meltdown that will hurt millions of residents. Lawmakers deserve credit for addressing frivolous litigation and other abuses that have plagued the state’s insurance system and driven up rates on consumers. However, delays have allowed the situation to degrade further, to a place where insurers are reducing coverage, withdrawing from Florida, and even going insolvent. The Legislature must take meaningful steps this session to shore-up the market and buy enough time for their recent reforms to begin having an impact. Florida’s insurance system cannot afford the cost of additional delays.”

– Christian Cámara, Senior Fellow, The James Madison Institute

To read “Battening Down: Policy Reforms to Avoid a Florida Insurance Meltdown,”  click here.


The James Madison Institute is a 501(c)3 organization dedicated to the ideals of limited government, economic freedom, federalism and individual liberty coupled with individual responsibility. The institute conducts research on such issues as criminal justice, healthcare, taxes and regulatory environments.