There’s a Problem with the Insurance Reforms in Florida

On Dec. 16, Senate Bill 2A was signed into law and repealed one-way attorney fees and The Governor and Legislature are painting these reforms as a win for the average Floridian. They claim this will help bring down insurance costs, as Florida has been ranked the most expensive state for property and automobile insurance over the last two years. In truth, these reforms will make things more difficult for regular citizens.

These changes will likely reduce the amount of insurance claims reported, which could potentially lower everyone’s insurance premiums, but there’s no guarantee of that. What is guaranteed is that fewer people will be able to sue their insurance companies if they fail to pay on a claim because they can’t afford to do so. Furthermore, cases with a lower projected payout will be less appealing for many lawyers, and they may become more selective about which cases they choose.

It will take years to understand the full scope of how these changes will affect the average Floridian, but early estimates don’t look promising. assignment-of-benefits agreements in property insurance claims. The one-way attorney fee law made it so that an insurance company would have to pay the legal bills of the policyholder if the policyholder successfully sued the insurance company who refused to pay a claim. Insurance companies claimed that this law encouraged individuals to sue their insurance companies for unnecessary reasons.

In early 2023, Governor Ron DeSantis announced further comprehensive reforms that the government hopes will decrease frivolous lawsuits and prevent predatory practices of trial attorneys that prey on hardworking Floridians.” DeSantis even went so far to say the legal system benefitted lawyers more than those injured.

On March 24, DeSantis signed House Bill 837, which will make it more difficult, and more expensive, to sue insurance companies.

The Governor and Legislature are painting these reforms as a win for the average Floridian. They claim this will help bring down insurance costs, as Florida has been ranked the most expensive state for property and automobile insurance over the last two years. In truth, these reforms will make things more difficult for regular citizens.

These changes will likely reduce the amount of insurance claims reported, which could potentially lower everyone’s insurance premiums, but there’s no guarantee of that. What is guaranteed is that fewer people will be able to sue their insurance companies if they fail to pay on a claim because they can’t afford to do so. Furthermore, cases with a lower projected payout will be less appealing for many lawyers, and they may become more selective about which cases they choose.

It will take years to understand the full scope of how these changes will affect the average Floridian, but early estimates don’t look promising.