Guest Op-Ed by Jim Maxwell, Vice Chair of Floridians for Government Accountability
We told you so. Back in 2023, we urged the Florida Legislature to pass much-needed tort reform to help stabilize the state’s auto and home insurance markets. We were right. We just did not realize how right we were.
In 2025, all 5 of the major auto insurers that make up about 78% of Florida’s auto insurance markets have filed for rate decreases. Thirty-three homeowners’ insurance companies have also filed for rate decreases. This is unprecedented in Florida, and without a major hurricane yet to hit our shores this year with just about 5 weeks left of hurricane season, Florida’s consumers are about to get another great blessing with insurance companies more than on the road to full recovery after 30 years of destabilizing public policy.
Not a penny from the Florida taxpayer was used to fund or support these insurance companies. The state legislature simply passed commonsense measures that would bring some balance and accountability back to our judicial system, helping to clean up our courts and alleviate stress for small business owners.
These groundbreaking reforms are clearly starting to work, but more work has yet to be done, and now our state legislature must fight back against those who want to reverse these measures that reduce costs for Floridians. Ceding ground on this issue is not an option, as it would cost Florida households and small businesses dearly.
Third-party litigation financing is a problem that must be addressed soon. Major hedge funds looking for a payday are swooping in and footing the bill for lawsuits against various companies and organizations just to get a cut of the verdict or settlement.
This outsider funding has increased the frequency of large settlements and jury awards exceeding the $10 million mark—known as nuclear verdicts. This has left insurers no other option but to raise their rates, consequently, putting more stress on all their policyholders.
Additionally, we must work to pass reforms regarding negligent security claims. Criminals should be held accountable for their actions, not small business owners. Negligent security claims are often employed to link businesses to damages hinged on the assertion that the business owner could have prevented a crime that happened on the property. Businesses shouldn’t have to take responsibility for a crime that they were not involved in.
If we address these two problems, it will go a long way to further alleviate the backlog in our court system and higher insurance rates for Florida families.
