Opinion: Florida needs further fixes this year for its property insurance problems

With the election in the rear-view mirror, lawmakers need to hit the ground to pass additional property insurance fixes this year. Floridians are suffering and need relief, especially those impacted by Hurricanes Ian and Nicole. (Gov. Ron DeSantis has called a special legislative session on insurance for later this month, set for Dec. 12-16.)

Pre-Ian, Florida was already in the throes of a property insurance crisis and the devastation wrought by Ian significantly increased the problem, which makes addressing insurance issues that much more dire.

Just last year, Florida generated 7% of the nation’s property insurance claims yet was responsible for more than 76% of the nation’s homeowner insurance lawsuits filed. This is particularly alarming considering Ian was the first major storm to hit our coast in four years. Clearly the state doesn’t have an insurance problem so much as it has a litigation problem, and the unnecessary lawsuits drive up insurance costs for everyone.

The best solution is to put power back in the hands of hardworking Floridians and out of the grasp of lawyers who create rampant litigation.

In the only gubernatorial debate and in campaign ads, former U.S. Rep. Charlie Crist criticized DeSantis for rising insurance costs. However, the main reason for this increase is due to the rising cost from litigation and therefore the urgent need for thoughtful tort reform.

A string of forced rate hikes from market-dominating insurers like Citizens Property Insurance, alongside the lack of market competition with other insurance providers, is crippling. Additionally, there are many unintended consequences resulting from the rate caps associated with Citizens even with their cost increases – it still prices out other insurance companies from competing in the Florida market.

The answer to Florida’s insurance crisis is to create competition by welcoming new competition and addressing Citizens’ below-market rates. By welcoming more players into the insurance marketplace, we can reduce insurance premiums paid for by hardworking Floridians and protect Florida taxpayers overall.

There is no question we need to keep an eye on Florida’s property insurance industry as Ian’s devastation serves as only the most recent reminder. But these days, protecting Floridians requires efforts to combat rate hikes and minimize the power of big insurers.

The Florida Legislature and Gov. DeSantis made strides on insurance during the first special session earlier this year. It’s time we support them taking additional action to further stabilize the insurance market. Let the next special session be productive and bring resolutions.