Florida's Insurance Reform: Governor DeSantis Tackles Key Challenges

At a recent Sebring Regional Airport event, Florida Governor Ron DeSantis addressed key issues impacting the insurance industry and the state's economic landscape. Central to his remarks were AI-driven prior authorization delays, challenges in property taxes, and insurance reform, all of which hold significant implications for Florida's regulatory compliance requirements and financial ecosystem.

Governor DeSantis highlighted the substantial rise in property tax revenues by local governments, surging from $32 billion in 2019 to $56 billion in 2025. This boost is driven by new residential developments and appreciating property values, raising concerns about homeowner affordability, especially for those with fixed incomes. To address these issues, DeSantis proposed sustaining essential services like law enforcement and education while ensuring tax relief for homeowners.

Insurance Reforms and Market Stability

Florida has implemented significant legislative reforms to stabilize the property insurance market, understanding the state's unique exposure to hurricanes. These industry reforms have mitigated costs and reduced litigation expenses, prompting carriers like Progressive to return savings to policyholders and State Farm to implement rate reductions. Additional underwriting changes have attracted new insurers to Florida, boosting competition and potentially lowering premiums for consumers.

Auto Insurance Challenges and Solutions

In the auto insurance sector, DeSantis acknowledged challenges posed by a diverse driving population. Recent legislative efforts have focused on limiting excessive litigation, maintaining competitive rates compared to national trends. This strategic approach ensures a more stable market environment and risk management, reinforcing Florida's position as a low-tax state that attracts residents and businesses.