Florida lawsuit decline impacts reinsurance rates

Hurricane Milton tested insurers under new rules

Florida’s property insurance market, once responsible for 76% of US homeowners’ insurance lawsuits, has seen litigation fall by more than 30% since reforms in 2022-23, according to Gallagher Re’s analysis of state data. 

The drop in lawsuits has influenced insurer performance, the role of Citizens Property Insurance Corporation, and the outcome of the June 1, 2025, reinsurance renewal.

The reforms, SB 2-A in 2022 and HB 837 in 2023, eliminated “one-way” attorney fees, abolished assignment of benefits for new property policies, shortened deadlines for filing claims, restricted attorney fee multipliers, and revised comparative negligence rules. Gallagher Re noted these measures were intended to reduce legal costs and bring stability to the market.

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