Nearly half come following industry-backed changes
A new report reveals that Florida’s insurance industry is profiting immensely from recent policy changes, even as those same changes harm policyholders and lead to a surge in lawsuits.
According to Weiss Ratings, following 2024 major hurricanes Helene and Milton, insurance corporations have closed almost 47% of claims without payment.
This is leading to Floridians aggressively fighting back to get the money they are owed after faithfully paying their premiums, increasing the number of lawsuits filed after claims closed without payment from insurers to almost 13%.
“For years, private insurance corporations have been price-gouging hardworking families and seniors while failing to pay out legitimate claims after natural disasters,” said Progress Florida Executive Director Mark Ferrulo. “After Governor Ron DeSantis and legislative leadership did the bidding of the insurance industry to pass policies that made it harder to hold them accountable, this new data shows Floridians are fed up with private corporations failing to uphold their promises in times of need.”
DeSantis signed five bills into law from 2022 to 2024: House Bill 7065 and Senate Bills 76, 2D, 2A, and most recently HB 837, with the goal to stabilize the market by curbing what the state has identified as drivers of rising insurance costs, such as litigation and fraudulent claims.
HB 7065 restr icted Assignment of Benefits (AOB) agreements, which had allowed contractors to take over an insurance claim and sue the insurer. It aimed to reduce lawsuits and prevent contractors from misleading homeowners.
SB 76 made it illegal for contractors to solicit homeowners with offers of a “free roof” or to waive their insurance deductible. It also made it a felony for a contractor to knowingly pay, waive, or rebate a deductible. The bill also shortened the time a homeowner has to file a new or reopened claim from three to two years.
SB 2-D, passed during a special legislative session, created a temporary statefunded Reinsurance to Assist Policyholders (RAP) program to help lower insurance rate increases. It also banned insurers from denying coverage based solely on a roof ’s age and eliminated “one-way attorney fees” for AOB-related claims.
SB 2A eliminated those one-way attorney fees entirely, which had allowed homeowners to recover legal fees if they won any amount in a lawsuit against an insurer. This law also requires insurance companies to respond more quickly to claims and to tighten eligibility for Citizens Property Insurance, the state-backed insurer.
HB 837 reformed Florida’s civil litigation system, making it harder for people to sue and win. It reduced the statute of limitations for negligence claims from four to two years and made it more difficult to sue for “bad faith” against an insurer and limit the amount of damages a person could claim for medical expenses in a lawsuit. These changes were intended to reduce overall litigation costs for insurers and other businesses.
“Policyholders in our state deserve real leadership that lowers costs and safeguards families and seniors from predatory private insurance corporations so they have the protection and peace of mind they’ve paid for,” Ferrulo said.
According to the EOG, DeSantis highlighted how recent insurance reforms are delivering real savings for Floridians.
“Among the state’s top 10 insurance carriers, 60% have expanded their business, and 40% have filed for rate decreases,” said the EOG. “The average rate increase has dropped significantly, from over 21% in 2023 to a projected 0.2% for 2025.”
Wiliam Rabb, Southeast Editor for Insurance Journal, stated in his article that, despite claims by Republican legislative leadership and Gov. DeSantis that the slate of insurance industry backed reforms passed in 2022 would decrease lawsuits, thus leading to lower costs for Floridians, premiums have increased by an average of 34% across the state in the last three years while lawsuits are on the rise.
Rabb said the new data comes after reports that insurance corporations have been hiding their profits using affiliate companies, and that stronger and more frequent storms caused by the climate crisis are making it more challenging for Floridians to find affordable coverage. He said it has left the state leading the nation in policy non-renewals, with executives receiving multimillion- dollar compensation packages while hardworking families and seniors struggle to pay their premiums.
“It is imperative that we hold private insurance corporations accountable to pay Florida families what they are owed when disaster strikes,” said Florida Watch Executive Director Natasha Sutherland. “While legislative leadership has focused on blaming Floridians trying to get the payouts they deserve in a time of crisis, private insurance corporations have generated massive profits and paid their executives lavish sums of money while denying claims for working families and seniors trying to recover.”
Sutherland said she thinks Floridians deserve better.
“Floridians deserve to know that their family’s futures and livelihoods will be protected, no matter what the weather brings, but the policies passed in recent years have just made it harder to navigate through the storm,” Sutherland said.
