Jerry Theodorou, the Policy Director for Finance, Insurance, and Trade at the R Street Institute, has stated that Florida’s insurance market has reaped benefits from legislative reform measures such as capping attorney’s fee awards. These measures have led to a reduction in the volume of “unmerited litigation” within the state. Theodorou made this statement in a commentary on April 4.

“Reform legislation took direct aim at the cause of Florida insurance market travails—mountains of unmerited litigation brought by billboard lawyers working in cahoots with unscrupulous contractors shaking down insurance companies,” said Theodorou. “The numbers tell the story: At the peak of its crisis Florida was home to 9 percent of the country’s homeowners’ insurance policies and homeowners’ property losses, yet it had 79 percent of the entire country’s homeowner insurance lawsuits.”

According to Adams and Reese LLP, HB 837, which was signed into law last year, introduced several reforms aimed at stabilizing Florida’s insurance market. This legislation imposed limits on bad faith claims against insurance providers and on attorney’s fee awards. Adams and Reese suggested that these reforms would benefit both plaintiffs and insurers.