The Insurance Information Institute (III) announced that Florida lawmakers plan to revisit transparency requirements for third-party litigation funding (TPLF) in an email sent on January 23.
According to the email, Florida's 2022 and 2023 tort reforms have reduced property insurance lawsuits, stabilized rates, and improved insurer loss ratios. These changes are expected to lead to a reduction in reinsurance prices for 2025. A recent court ruling upheld Senate Bill 2A, clarifying that "direction to pay" agreements are not valid assignments of benefits (AOB), thereby limiting third-party contractor lawsuits.
The Florida Senate reports that House Bill 1205, effective July 1, 2023, prohibits misleading advertisements for legal services and restricts the use or disclosure of protected health information without written authorization. The law requires legal service ads to include specified information and statements, with violations deemed deceptive and unfair trade practices. It aims to enhance consumer protection and address concerns about exploitative legal advertising practices.
The rise of TPLF has significantly impacted the auto insurance market, contributing to increased claim severity and litigation costs. According to Risk & Insurance, commercial auto liability claims experienced over $20 billion in social inflation-related losses between 2010 and 2019.
According to their website, the Insurance Information Institute (Triple-I) is a leading non-lobbying organization with over 50 member companies dedicated to providing fact-based, data-driven resources to educate and empower consumers about insurance.