Personal insurance litigation in Florida has seen a significant drop, falling nearly 25% in the first half of 2025 compared to the same period last year. This decline is attributed to recent legal reforms, according to the Florida Office of Insurance Regulation (OIR).
The trend of decreasing litigation rates is not new. From 2023 to 2024, there was a 23% drop in lawsuits, and since 2021, the total number of legal filings has decreased by as much as 36%. Even the smallest annual decrease during this period was 15%.
Florida has been tracking this data since 2021 through a legal service process that requires individuals to inform their insurance companies at least ten days before filing a lawsuit. If a lawsuit is filed without this notice, it can be dismissed, and the courts may require the policyholder to cover the insurer’s legal costs.
This reduction in litigation is part of broader efforts to stabilize Florida’s property insurance market. Recent legislative changes have eliminated one-way attorney fees and altered the standards for bad faith litigation, which are believed to contribute to the decrease in lawsuits.
Erin Collins, a senior vice president at the National Association of Mutual Insurance Companies, noted that these figures highlight the positive effects of the state’s tort reforms. She emphasized that addressing the root causes of market challenges is essential.
Mark Friedlander, senior director of media relations at the Insurance Information Institute, remarked that the decline in legal filings has relieved some pressure on insurers. As a result, several companies have either reduced their rates or kept them stable over the last 18 months. Friedlander also mentioned that the improved legal climate is attracting new insurance carriers to Florida, which is beneficial for consumers as it leads to more competitive pricing.
Friedlander added that both new and existing insurers are eager to expand their presence in Florida, confident that the improved litigation environment will allow them to operate profitably. Many insurance agents are reporting significant savings for their customers when they shop for policies at renewal time.
This positive trend in Florida’s insurance market could mean good news for policyholders, as competition among insurers may lead to better rates and more options for consumers.