The Backstory: Big Promises in 2023

In 2023, Florida lawmakers passed a sweeping set of tort reform changes, telling citizens it would bring relief from rising insurance premiums and the Florida insurance crisis. The reforms made it harder for everyday Floridians to file lawsuits — all in the name of keeping insurers solvent and premiums affordable. Although I’m also a consumer and I want my insurance rates to go down, I know that “tort reform” is usually just a label to give legislators cover to pass bad laws that hurt consumers and prevent them from freely exercising their Seventh Amendment right to a trial by jury.

Once again, it’s become clear in Florida that the results of tort reform haven’t matched the promises.

What They Didn’t Tell Us: Profits Were Up All Along

An investigation by the Tampa Bay Times revealed something that should concern every policyholder in Florida: while lawmakers were busy weakening legal protections for consumers, many insurance companies were quietly reporting record profits.

These same insurers had claimed they were barely staying afloat. In reality, they were actually making money. The report found that while insurers were claiming financial hardship, they paid out $680 million in dividends to shareholders and funneled billions to affiliated companies. Between 2017 and 2019, the insurers in the study reported a combined net loss of $432 million — yet their affiliates made $1.8 billion in profit. When all 53 companies were included, the insurers themselves reported $61 million in net income, while their affiliates raked in nearly $14 billion.

In a recent column for the Orlando Sentinel, columnist Scott Maxwell points out what most consumers already know. Florida’s legislature had another chance this year to take meaningful action on insurance affordability, but they chose not to. Instead, bills that could have protected consumers or increased transparency died quietly while they argued with the governor over his agenda. They also effectively stripped away our right to get constitutional amendments on the ballot in Florida, but that’s a topic for another article.

It’s frustrating, but not surprising. Insurance companies remain some of the most powerful players in Tallahassee. And while rates continue to rise, the people footing the bill — homeowners, business owners, and yes, injury victims — are left holding the bag.

Where Does This Leave Florida Consumers?

Even after “reform,” Florida consumers are still paying more and getting less. Injury victims still face insurance companies that delay and deny. As a personal injury attorney, I’ve had a front-row seat to this pattern. Industry players warn of catastrophe, lawmakers respond with restrictions on everyday people’s rights, and insurers continue to profit. We’ve seen it before, and we’re seeing it again.

Florida doesn’t need more giveaways to insurance companies. It needs transparency, consumer protections, and lawmakers who will put people ahead of powerful interests. We need insurance reform that brings down premiums.

And it needs citizens to ask why does insurance “reform” always seems to benefit the insurance companies and not the consumer.