Jacob Ogles
The American Property Casualty Insurance Association has unveiled its legislative priorities for the 2022 Session.
The industry advocates want to see steps to stabilize the insurance market and control rising rates. The group said that can be helped with limits on lawsuits, stopping abuse and keeping consumer costs a priority in any consideration of repealing no-fault insurance.
“As APCIA works with lawmakers this Session on a variety of policy issues, a key focus area is on the long-term health and sustainability of Florida’s property insurance market and protecting consumers from rising costs,” said Logan McFaddin, assistant vice president of state government relations for APCIA.
“Lawsuit abuse is a major cost driver in the home and auto insurance market, and more reforms are needed to rein in frivolous litigation.”
While Florida accounts for 8% of all homeowners insurance claims, the state is home to 76% of insurance lawsuits. That’s something the industry pressed the Legislature for years to address. And while some progress came in an insurance overhaul Gov. Ron DeSantis signed last year, that fell short of many of the reforms the association pursued.
“Florida lawmakers passed, and Gov. DeSantis signed into law beneficial reforms in 2021 to help alleviate some key pressure points in Florida’s property insurance market, but more work needs to be done to address a crisis of this magnitude,” McFaddin said.
Sen. Jim Boyd, the Bradenton Republican who sponsored last year’s overhaul in the Senate, notably already committed to taking another run at reform.
On the no-fault front, the Legislature passed a bill to repeal Florida’s no-fault insurance rules last year, but DeSantis vetoed the legislation. In his veto message, the Governor said the language as passed “does not adequately address the current issues facing Florida drivers and may have unintended consequences that would negatively impact both the market and consumers.”
Many insurance groups cheered the decision at the time.
The APCIA, for its part this year, said it will work with lawmakers intent on repeal. But to support any bill, the legislation must have “the necessary cost control measures and safeguards to prevent rampant fraud and increased lawsuit abuse.”
“Any attempt to eliminate or reform Florida’s no-fault auto insurance system must result in cost-savings for drivers,” McFaddin said. “Repealing Florida’s no-fault auto insurance system without addressing much needed bad faith reforms could lead to higher costs and increased litigation.”
The same caution goes for any foray into data privacy the Legislature decides to make this year. A bill backed by DeSantis on that topic died at the end of Session last year, but House Speaker Chris Sprowls remains intent on placing something on the Governor’s desk.
“While APCIA is supportive of consumer rights online, it is important for lawmakers to find the right balance as they consider new regulations for business, so there are not unintended consequences that lead to increased costs for consumers,” McFaddin said.
