Study: Florida insurance market plagued by attorney fee-shifting

by | Nov 30, 2022



  • ACI released a new study on Wednesday 
  • The new study recommends reforms that look to tackle Florida’s litigious homeowner insurance environment and rising premiums

The American Consumer Institute (ACI) released a new study highlighting incentives driving financial instability in Florida’s homeowner insurance market.

ACI noted these market conditions harm consumers by forcing them to pay exorbitant premiums to insure their property – doubling in just the last three years and running $2,600 more than the national average.

Despite the Florida’s legislature attempting to address these concerns, ACI says attorneys have already found new ways to circumvent legislative protections, further driving up profits and consumer prices.

Governor Ron DeSantis has since called for a special legislative session to address these problems.

Today, Florida accounts for nearly 80% of the county’s insurance lawsuits

Additionally, ACI offered key recommendations that would attack litigiousness, close loopholes and protect consumers from rapidly increasing insurance premiums.

ACI is urging the Florida legislature to end or restrict the state’s one-way attorney fee statute. ACI also encourages legislators to close off attorneys’ next avenue for fee-shifting by prohibiting AOB vendors in first-party claim matters from filing Civil Remedy Notices against insurers.

The group says these reforms should tackle Florida’s litigious homeowner insurance environment and alleviate increasing premiums for consumers.

To view the full study, click here.

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