FOR IMMEDIATE RELEASE
December 4, 2024
CONTACT
Logan Elizabeth Padgett
850-386-3131
The James Madison Institute Releases New Policy Brief on Property Insurance Reform
TALLAHASSEE – Two years ago, the Florida Legislature took bold steps in attacking the root causes of the state’s property insurance crisis. Since then, there are signs that the market is stabilizing despite recent 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 hurricanes.
As a newly-elected Florida Legislature begins to convene for committee weeks and session, legislators 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 severely increasing, competition was decreasing, and losses due to uncontrolled litigation were fleecing the industry and triggering downgrades and insolvencies.
The James Madison Institute (JMI) has released a new report entitled “Progress in Motion: Florida’s Insurance Reforms Gaining Momentum” by JMI Senior Fellow Christian Cámara. The JMI report examines the issues that plagued the market prior to reforms being enacted and explains how the market is currently stabilizing. The policy brief goes on to encourage lawmakers to resist any pressure to dilute any of the reforms that are already having a positive impact less than a year after they were enacted.
“Recent reforms by the Florida Legislature to address the critical issues affecting our property insurance market are gaining momentum. With more than 20 new insurers entering the market, nearly 400,000 Citizens policies shifted to these insurers, and the continued softening of reinsurance rates, it is clear these reforms are delivering expected results. As our court system continues to process the more than 280,000 lawsuits filed prior to these reforms taking effect and policy rate stabilization persists, we urge continued patience to allow the building momentum of these reforms to bring needed relief to Floridians.” – Doug Wheeler, Director, George Gibbs Center for Economic Prosperity, The James Madison Institute
“Floridians are reasonable enough to justify the higher costs associated with living in a tropical peninsula susceptible to storms and flooding. But for far too long, Florida’s property insurance market was allowed to be fleeced by uncontrolled litigation, which caused rates to spike far above reasonable and understandable levels. Two years ago, lawmakers took bold action to tackle the cost drivers disconnected from the state’s natural risks, but warned that those reforms would take time to translate into rate relief. Since then, we have seen costly litigation decrease, capital investment increase, insurance options expand, and the rates most consumers pay either stabilize or even drop. In short, the reforms are working within the expected timeframe, so it is incumbent on lawmakers to hold the line and resist any pressure to weaken or undo them.” — Christian R. Cámara, Senior Fellow, The James Madison Institute
Read “Progress in Motion: Florida’s Insurance Reforms Gaining Momentum” 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, health care, taxes and regulatory environments.
