Guest editorial by Jim Maxwell, Florida Deputy Commissioner for Government Accountability
we said so. Back in 2023, we called on the Florida Legislature to pass much-needed tort reform to stabilize the state’s auto and home insurance markets. We were right. We didn’t realize how right we were.
In 2025, all five major auto insurance companies, representing about 78% of Florida’s auto insurance market, have applied for rate reductions. Thirty-three homeowners insurance companies have also applied for premium reductions. This is unprecedented in Florida, and with about five weeks left in hurricane season and no major hurricanes yet to make landfall, Florida consumers are about to get another big blessing from their insurance companies, even more so than the state is on its way to a full recovery after three decades of public policy instability.
Not a dime of Florida taxpayers is used to fund or support these insurance companies. State legislatures can help clean up the courts and reduce stress for small business owners simply by passing common sense measures that restore balance and accountability to the judicial system.
These ground-breaking reforms are clearly starting to have an impact, but there is still much work to be done. The Legislature must now fight back against those who seek to roll back these measures that reduce costs for Floridians. Compromising on this issue is not an option because it would cause tremendous harm to Florida families and small businesses.
The funding of third-party litigation is an issue that must be addressed urgently. Big hedge funds looking for a payday are pushing the costs of lawsuits against various companies and organizations just to get a cut of the verdicts and settlements.
This outside funding has increased the frequency of large settlements and jury verdicts exceeding $10 million, known as nuclear verdicts. As a result, insurance companies have no choice but to increase rates, resulting in additional stress for all policyholders.
Additionally, we must work to pass reform regarding negligent collateral claims. Criminals, not small business owners, should be held accountable for their actions. Negligent security claims are often used to bind businesses to damages based on claims that they could have prevented a crime that occurred on their premises. Companies do not have to be held responsible for crimes they are not involved in.
Addressing these two issues would go a long way toward further reducing backlogs in the court system and increasing premiums for Florida families.
