Mark Friedlander, Director of Corporate Communications at the Insurance Information Institute (Triple-I), said that Florida's recent legal reforms have stabilized property insurance rates, reduced lawsuits, and improved market conditions. Friedlander shared his statement via Triple-I's email on January 23.
"Legislative reforms have vastly improved Florida's property insurance market," said Friedlander. "Any efforts to roll back the reforms previously passed would have a negative impact."
According to the email, Florida's 2022 and 2023 legal reforms have led to a reduction in frivolous lawsuits, stabilization of homeowner insurance rates, and improved market conditions with a decrease in property claims lawsuits and better insurer loss ratios. A recent court ruling upheld Senate Bill 2A, which limits third-party contractor lawsuits by clarifying that "direction to pay" agreements are not valid assignments of benefits (AOB). Lawmakers plan to reintroduce legislation in 2025 to enhance transparency for third-party litigation funding (TPLF).
NewsBreak reports that Florida's 2022 legal reforms resulted in a 58.8% reduction in lawsuits against insurers from 2021 to 2024, stabilizing insurance rates and lowering claim-related litigation costs. However, these reforms make it more challenging for policyholders to contest denied or underpaid claims, potentially limiting recourse for smaller disputes.
TPLF has impacted the auto industry by increasing litigation costs and claim severity, contributing to over $20 billion in social inflation-related losses for commercial auto liability claims between 2010 and 2019, according to the Insurance Information Institute.
According to Triple-I's website, Friedlander has been the Director of Corporate Communications since 2020 and brings over 13 years of experience in insurance communications. His previous leadership roles include positions at The Main Street America Group, Prudential Financial, and HSBC Holdings.