In an eblast to members and different stakeholders, Triple-I highlighted the rising want for tort reform in Georgia and the increasing motion in Florida threatening to undo the optimistic 2022 and 2023 reforms which have stabilized the Sunshine State’s insurance coverage market and pushed down costs for shoppers and enterprise homeowners.
March 24 marks two years since Florida Gov. Ron DeSantis signed HB 837, the second of two impactful tort reform payments tackling Florida’s lawsuit disaster that pushed the insurance coverage market to the sting. In accordance with Nationwide Affiliation of Insurance coverage Commissioners information, Florida accounted for simply over 8% of U.S. householders insurance coverage claims, however greater than 76% of U.S. property declare lawsuits in 2019 earlier than essential reforms had been enacted. All of which is proof of a system in disarray.
A current commentary written by Jerry Theodorou, director of the Finance, Insurance coverage and Commerce Coverage Program at R Road Institute, highlighted huge enhancements in Florida’s property insurance coverage market as a consequence of legislative reform:
- Lawsuit filings dropped by 40% year-over-year.
- Common residence insurance coverage premiums have decreased 5.6%.
- 11 new property insurers entered the market.
Regardless of these clear indicators of progress, a misguided Florida Home investigation, which started final week, has been fueling deceptive narratives about tort reform, simply as Georgia lawmakers are contemplating essential authorized system reforms within the Peach State.
Critics in Florida declare insurers illegally diverted funds to managing basic brokers and associates whereas dismissing the well-documented position of lawsuit abuse in driving up prices. This was based mostly on a draft report concerning the monetary operations of Florida insurers that the Florida Workplace of Insurance coverage Regulation selected to not distribute as a result of it was deceptive.
This similar rhetoric is now infiltrating the Georgia Capitol in Atlanta, the place some are arguing that Florida lawmakers had been duped into passing reforms in 2022 and 2023. In reality, Florida’s danger disaster stems from rampant authorized system abuse, an element that has elevated insurance coverage premiums for everybody.
Even with the distorted narrative trial attorneys are inflicting on Florida lawmakers, Gov. DeSantis said he wouldn’t assist any laws that will enhance lawsuits towards insurers. A current opinion piece written by Florida insurance coverage agent Allen McGinniss additional highlights the truth of the Florida insurance coverage market, explaining that the false narrative —that the insurance coverage business, not lawsuit abuse, is driving excessive prices for shoppers “is not only inaccurate — it’s reckless.”
In Georgia, the damaging rhetoric coming from neighboring Florida should not delay progress that has already been made within the 2025 Basic Meeting to place an finish to authorized system abuse within the Peach State.
Tort reform is important to curbing lawsuit abuse, stabilizing markets, and defending companies and shoppers in Georgia. Lawmakers can’t fall for a similar ways the trial bar in Florida designed to stall much-needed authorized system reforms for a few years. Following passage by the Georgia Senate, the Home should act now to go these essential tort reform payments and ship them to Georgia Gov. Brian Kemp’s desk to signal into legislation.
Each Florida and Georgia are at a pivotal second in civil justice reform. Authorized system abuse has generated elevated insurance coverage prices in each states, fueling social inflation and putting a heavier monetary burden on households and enterprise homeowners. The stakes are too excessive to let trial attorneys and unhealthy actors manipulate legislators into reversing progress or blocking much-needed reforms.
Florida lawmakers should keep the course to make sure the profitable authorized reforms over the previous few years stay intact, whereas Georgia legislators should seize this chance to go significant authorized system modifications. These actions are important to lowering lawsuit abuse, stabilizing insurance coverage markets, and defending shoppers and companies from rising prices.
Go deeper:
- For extra in-depth evaluation on authorized system abuse and social inflation, go to Triple-I’s data hub and StopLegalSystemAbuse.org microsite.
- Uncover extra concerning the influence of authorized system abuse in Florida and Georgia by studying Triple-I’s newest Florida and Georgia Points Briefs.
