Florida lawmakers have spent months trying to fix the state’s property insurance crisis.
After two special sessions dedicated to the topic and additional legislation passed during the March session, prices won’t go down anytime soon.
In fact, this week Citizens Property Insurance, the state-run insurer of last resort, announced this week its plans for an average 14% rate increase.
“Because the Florida insurance market was in such a bad position before the legislation was passed, you can’t fix it overnight,” said Mark Friedlander with the Insurance Information Institute.
The series of new laws signed by Governor Ron DeSantis focus mostly on tort reform. Florida has more insurance related lawsuits than every other state combined.
Other insurance companies have announced plans for rate increases anywhere from 40% to 60%.
“We’re still going to suffer some pain this year. Because we don’t expect to see significant changes for at least 18 months,” said Friedlander.
The belief among supporters of the series of tort reforms is that once the threat of lawsuits are off the table, more businesses will move to the Sunshine state.
Friedlander says that’s already happening, with several new insurance startups recently opening in Florida.
“They are bullish on growing their business,” said Friedlander. “They’ve come out publicly and said they’re very happy with the legislative process and what happened with the reform package. They want new customers.”
But critics argue the legislation has focused too much on the courtroom and not on the price of the insurance premiums.
“There’s nothing to force (the insurance companies’) hand to do the right thing,” said Gina Clausen Lozier, an attorney who handles insurance cases. “Those really have been more eroded than anything else.”
