U.S. Chamber Institute for Legal Reform says Florida’s insurance market shows clear signs of improvement

The U.S. Chamber Institute for Legal Reform has announced that Florida's insurance market is showing signs of recovery, attributing this progress to recent legal reforms. The organization also cautioned against efforts to reverse these gains, as said in a press release.

According to the U.S. Chamber Institute for Legal Reform’s blog post dated August 18, 2025, Florida's comprehensive legal reforms enacted in 2022 and 2023 are leading to tangible improvements in the insurance market. These reforms include reducing the statute of limitations for negligence claims, modifying comparative negligence rules, requiring medical damages to be based on actual payments rather than billed charges, and eliminating most one-way shifting of attorney’s fees. The Institute explains that these measures were intended to curb litigation-driven cost-distorting practices, thereby restoring insurer participation and improving affordability. They emphasize that the emerging market stabilization is a direct result of these targeted policy interventions.

As reported by Insurance Journal, Florida Peninsula Insurance Company filed in July 2025 for an average 8.4 percent decrease in homeowners’ insurance rates and a 12 percent reduction for condominium coverage. This shift is attributed in the article to the statewide impact of the legal reforms implemented in previous years. The premium reduction is among the first concrete signs that these reforms are enabling insurers to lower costs. Meanwhile, Doug Wheeler from Florida Politics highlights that more insurers are reentering the market, signaling enhanced competition and consumer choice.

Calle Ocho News reports that plaintiffs’ powerhouse Morgan & Morgan reduced its Florida homeowner insurance litigation team from 30 attorneys to just five following the elimination of one-way attorney fee shifting under the 2022–2023 reforms. This contraction underscores how incentives for such litigation have changed and reflects a broader retreat of litigation-driven strategies in Florida's homeowner insurance courts. Additionally, the Florida Office of Insurance Regulation reported that the state’s top five auto insurance groups are projecting a 6.5 percent average rate decrease for 2025, explicitly citing reduced litigation-related expenses as a major factor behind their lower rate outlook.

According to the U.S. Chamber of Commerce, the Institute for Legal Reform is a leading national advocate for civil justice reform, promoting fairness, transparency, and economic growth across both domestic and international spheres. The Institute develops policy solutions, conducts research, and partners with business and legal communities to curb abuse in litigation while preserving access to justice.