Jimmy Patronis, Florida’s Chief Financial Officer (CFO) and State Fire Marshal, stated in a July 24 post on X that Florida’s insurance market is improving after state leadership "confronted insurance lawsuit abuses" through legislative reforms.
"Bold, corrective actions are the answer," said Patronis. "For example, since Florida confronted insurance lawsuit abuses 2yrs ago: 8 carriers have entered FL,13 insurers filed for rate decreases, 800% increase in take-out activity from Citizens (FL's insurer of last resort)."
Gov. Ron DeSantis signed HB 837 into law on March 24, 2023, with the goal of reducing the number of "frivolous" lawsuits in the state and preventing trial attorneys from engaging in "predatory practices," according to a press release from the governor's office. The bill enacted tort reform measures including clarifying that negligence alone does not constitute "bad faith," eliminating attorneys’ fee multipliers, and establishing uniform standards to assist juries in calculating accurate medical damages. "Florida has been considered a judicial hellhole for far too long and we are desperately in need of legal reform that brings us more in line with the rest of the country," DeSantis said in a statement at the time. "I am proud to sign this legislation to protect Floridians, safeguard our economy and attract more investment in our state."
According to a client advisory from McGriff Insurance Services, prior to HB 837, Florida’s insurance market "struggled for some time due to surging claims litigation." Plaintiff’s attorneys were tying up claims for long periods of time to try to get larger fees from insurance carriers and were filing "frivolous" lawsuits with the goal of "winning quick settlements." HB 837 targeted the large number of "questionable" lawsuits in Florida that were ultimately driving up insurance costs for all policyholders.
Florida Insurance Commissioner Michael Yaworsky said in May that Florida’s insurance markets are showing signs of stabilization, according to a press release from the Office of Insurance Regulation (OIR). He said insurance reforms spearheaded by DeSantis, the state legislature, and the Financial Services Commission have contributed to the first downward trend in rate filings in years. At least eight insurance companies filed rate decreases for 2024, while ten other companies filed 0% rate increases. In the wake of the reforms, eight new companies were also approved to write home insurance policies in Florida.
According to OIR, several other states, including Georgia and Louisiana, are considering legislative tort reform measures to improve their insurance markets after seeing Florida’s reforms.
Patronis previously served as a member of the Florida Elections Commission and as a State Representative from 2006 to 2014, according to the state CFO website. As CFO, Patronis oversees the licensing of insurance agents and agencies.