George Feijoo, a partner at Floridian Partners, expressed concerns that House Bill 1551 threatens recent insurance market reforms and could unfairly shift legal risks onto consumers. He made the statement during public testimony on the bill.
"We respectfully speak today in opposition to the bill," said Feijoo. "The party with no skin in the game is the plaintiff's attorney. We should be excited to see the continued healing of the market. The legislature put in place meaningful regulations, including post-hurricane claims handling examinations."
According to AM Best, reciprocal insurance exchanges are member-owned entities where policyholders insure one another through a shared attorney-in-fact. These structures have seen rapid growth in catastrophe-prone regions like Florida, with at least 21 reciprocal exchanges formed between 2017 and 2024—nearly half domiciled in the state.
The Florida Office of Insurance Regulation reports that plaintiffs’ attorneys in property insurance lawsuits collected $2.5 billion in fees between 2016 and 2020, while policyholders received just $1.2 billion. Litigation costs have been identified as a significant factor contributing to rising insurance premiums across the state.
Following recent reforms, insurer insolvencies have declined, and new insurers have cautiously begun re-entering the Florida market, according to the Insurance Information Institute. This early stabilization is particularly important for reciprocal exchanges, which rely on predictable regulatory conditions to operate effectively. However, proposed legislation such as House Bill 1551 could reintroduce uncertainty and potentially hinder this progress.
Feijoo is a partner at Floridian Partners, specializing in government affairs, legislative advocacy, and regulatory strategy. He previously held senior roles in Florida state government, including Chief of Staff at the Florida Department of Financial Services.