Florida Tort Reform Revitalizes Property Insurance Market, Reports Gallagher Re

Gallagher Re's whitepaper on Florida Tort Reform analyzes legislative changes between 2022 and 2023 that have reshaped Florida's property insurance market. Florida's market has faced challenges due to high litigation costs and natural disaster exposures, leading to years of unprofitable underwriting and rising homeowners insurance premiums. The reforms focused on addressing litigation drivers such as "one-way" attorney fees and Assignment of Benefits laws, which had inflated claim volumes and insurer expenses. Following the reforms, litigation costs have declined and insurer profitability has improved, revitalizing the property insurance market in Florida. This has attracted the interest of other states exploring similar tort reform measures to enhance market stability and reduce litigation-related costs. Gallagher Re concludes that these reforms have improved attractiveness for carriers, reinsurers, and capital providers in Florida's property insurance sector.