Peter Cuderman, Director of Legislative and Intergovernmental Affairs of the Executive Office, said that Florida's insurance market has stabilized following major tort reforms. These changes have resulted in more insurers entering the market, lower costs, and fewer lawsuits.
"Florida finally stabilized its insurance market after landmark tort reforms in 2022 and 2023," said Cuderman. "12 new insurers entered the market. Lawsuits fell 23% Consumers saw rate reductions for the first time in years."
According to the Insurance Industry Institute, Florida’s insurance market has shown signs of stabilization following major tort reforms enacted in 2022 and 2023. These reforms have helped reduce litigation abuse and restore insurer confidence, particularly for models like reciprocal insurance exchanges. The reforms targeted fraudulent claims and runaway legal fees, making the state more appealing for insurers structured around member-driven, cost-conscious operations. As a result, reciprocal exchanges are increasingly being viewed as a viable solution to Florida’s historically volatile insurance landscape.
As reported by Floir, since these legislative changes took effect, 12 new property and casualty insurers have entered the Florida market. This includes the April 2025 approval of Apex Star Reciprocal Exchange, which is a notable example of this growing trend. The rise of reciprocal insurers signals renewed interest in alternative structures that distribute profits back to members and emphasize disciplined underwriting. Collectively, these new entrants have brought over $418 million in policyholder surplus, reinforcing the state’s insurance capacity while offering Floridians access to innovative, policyholder-centered insurance solutions.
According to Marsh McLennan Agency, litigation against insurers in Florida has dropped significantly. This trend has been especially beneficial for reciprocal insurance exchanges that operate on thin margins and rely on predictable claims environments to deliver value back to their members. In 2023, lawsuits filed against insurers fell by 23.8% in the first three quarters compared to the same period the prior year. This decline was driven largely by reforms that restricted practices like assignment of benefits and curbed attorney fee multipliers. The reduction helps reciprocal exchanges better control legal expenses and allocate surplus toward member benefits rather than legal defense costs.
Cuderman is also a U.S. Marine Corps officer serving as Executive Officer of Charlie Company, 4th Assault Amphibian Battalion, with previous deployment experience in Japan. He holds a J.D. from Mitchell Hamline School of Law, an MBA, and a bachelor's degree in legal studies from Florida Gulf Coast University. Additionally, he has held senior political roles in both of Governor Ron DeSantis’ campaigns.