Every Floridian can celebrate the two-year anniversary of significant reforms that are stabilizing and decreasing insurance premiums for property and auto owners.
With nation-leading cuts to insurance rates, lawmakers should allow the positive changes that are benefiting Floridians to continue.
“The facts are crystal clear – insurance rates are stabilizing or dropping for Floridians,” said Mark Wilson, President and CEO of the Florida Chamber. “We cannot go backwards to the days when meritless litigation led to higher bills for hard-working Floridians.”
This great news for Floridians started two years ago on March 24, 2023, when Governor Ron DeSantis signed House Bill 837, which eliminated risk-free litigation through the elimination of the one-way attorney fee statute that forced insurers out of business or out of the state.
The changes are already providing relief for Floridians:
- In 2024, Florida had the lowest average homeowners’ premium increases in the nation of just 1% compared to other states which have seen increases as high as almost 23%.
- The average rate increase has dropped from almost 22% in 2023 to a projected 0.8% for 2025.
- Auto insurance costs are also dropping with major companies filing for rate reductions between 6% to 10.5%.
- Litigation has dropped by nearly 30% from peak levels.
- And the state’s Office of Insurance Regulation is policing insurers to protect consumers from bad conduct. In the fiscal year 2023-2024, OIR issued nearly $3 million in fines, nearly seven times more than the fines collected in the last two-thirds of 2023.
The good news continues. Recently, the Sun-Sentinel reported that homeowner insurance costs fell by 0.7% between the third and fourth quarters of 2024.
The reforms directly led to Mangrove Property Insurance entering the Florida market to offer property insurance.
“We appreciate the legislative and regulatory reforms, which we believe have stabilized Florida’s marketplace, inspiring our conviction to bring new capital, capacity and expertise to help homeowners meet their property insurance needs,” said Stephen Weinstein, CEO of Mangrove Property Insurance Company. “Assuming a continuation of a stable legal and regulatory framework in the future, together we can help Florida’s residents better manage the volatility of hurricanes and other hazards, strengthen their homes, and foster stronger, more sustainable communities.”
Across the board, insurers are asking for stable or lower rates with more companies entering the market.
- Since January 2024, nearly 100 homeowners and auto insurance companies have filed for a rate decrease or no change or increase.
- This is due in part to 11 new companies entering the market in the last two years.
- Among the state’s top 10 insurance carriers, 60% have expanded their business, and 40% have filed rate decreases.
And earlier this week, Office of Insurance Regulation Commissioner Mike Yaworsky continued to highlight Florida’s strengthening insurance market, marked by the entry of Apex Star Reciprocal Exchange — the 12th new property and casualty insurer to enter the state since historic legislative reforms.
In addition to helping working Floridians, the reforms are reducing the amount of fraud and abuse that was happening in Florida’s insurance markets.
“Florida’s 2022 and 2023 auto glass and assignment of benefits reforms have helped reduce fraud and shield consumers from rising insurance costs,” said Eric De Campos, National Insurance Crime Bureau (NICB) Senior Director of Government. “Since this legislation passed, Florida’s questionable auto glass claims fell 46% from 2023 to 2024. NICB is proud to recognize and celebrate the efforts of law enforcement, policymakers, and NICB member companies in protecting Floridians from fraudsters that abuse our legal system for their personal gain.”
With all the positive momentum over the last two years, now is not the time for the legislature to roll back their previous successes in the passage of HB 837.
For information on how the Consumer Protection Coalition is advocating for the right policies that put the needs of Florida consumers first, click here.