Florida Insurance Reforms Limit Accountability, Impact Policyholders and Market Stability

Recent statutory reforms in Florida aimed at addressing insurance premium rises and litigation have resulted in reduced accountability for insurance companies, adversely affecting policyholders.

These legislative changes have introduced multiple opportunities for insurers to delay or deny claims without facing immediate legal consequences, shifting the burden of proof and investigation onto plaintiffs and their attorneys.

This shift has impacted both personal injury and commercial insurance sectors, including Directors and Officers liability, cyber coverage, and Errors and Omissions policies, leaving businesses vulnerable despite clear liability.

Despite intentions to stabilize the market and reduce premiums, insurance premiums continue to rise, and some carriers have exited the Florida market, while policyholders face diminished legal remedies. The broad scope of these reforms also extended to unrelated claims such as medical billing, which has negatively affected providers without benefiting the property insurance market.

Policyholders are advised to maintain transparency and thorough documentation throughout the insurance process and to seek legal counsel early to protect their interests in an environment where insurer accountability has lessened. The article underscores the need for legislative revision to restore a balance that ensures insurance companies uphold good faith obligations and reinforces protections for policyholders in Florida's insurance market.