In March 2023, Florida enacted one of the most transformative civil justice reform packages in the nation through House Bill 837. At a moment when litigation costs were crippling insurers, destabilizing markets, and driving premiums to some of the highest levels in the country, Florida lawmakers took decisive action that is now producing measurable progress for families and businesses across the Sunshine State.
Prior to these reforms, Florida accounted for just over 8 percent of U.S. homeowners insurance claims but was responsible for more than 76 percent of all homeowners insurance lawsuits nationwide. This extreme imbalance placed an enormous strain on insurers, increased litigation-driven costs, and contributed to a cycle of rising premiums and shrinking market capacity.
Central to Florida’s reforms was the elimination of structural incentives that had made litigation disproportionately profitable. For years, Florida allowed one-way attorney fees, meaning that when a plaintiff prevailed in many insurance disputes, the insurer had to pay the plaintiff’s legal fees regardless of the outcome for the insurer. Contingency fee multipliers also enabled courts to increase attorneys’ fees beyond standard amounts, often resulting in total legal fees that exceeded the plaintiff’s recovery. These provisions created powerful financial motivation to file lawsuits, even in marginal cases, and made Florida an outlier in the national legal landscape.
HB 837 repealed the broad application of one-way attorney fees and limited fee multipliers to rare and exceptional circumstances. By realigning attorney fee structures with national norms and reinforcing standards for attorney compensation, the reforms have removed the legal incentives that fueled excessive litigation and unpredictable outcomes.
The 2023 reforms also addressed other key drivers of litigation pressure and social inflation by modernizing comparative negligence standards, shortening the statute of limitations for negligence claims to two years, clarifying bad faith standards with defined safe harbors, and strengthening requirements for proving medical damages based on amounts actually paid or accepted.
Early Results Show Progress
These legal reforms are already producing measurable results that benefit Floridians:
- Litigation is declining. Detailed reporting from regulators and industry sources shows year-over-year massive reductions in claim-related lawsuits following the implementation of reform-era changes. Reduced litigation means lower defense costs and greater market stability.
- Auto insurance costs are easing. The Florida Office of Insurance Regulation reported that the largest private passenger auto carriers projected an average rate decrease for 2025, driven in part by improved loss experience and fewer litigation-driven claims. Florida’s personal auto liability loss ratio dropped to the lowest in the nation, reflecting healthier underwriting fundamentals.
- Homeowners rate trends moderate. National data show Florida’s weighted average homeowners rate increase remained around one percent in 2024, compared with double-digit increases nationally, while more insurers have entered the market.
A Model for the Nation
Florida’s reforms are impacting more than just the insurance industry. Families see the difference through more stable premiums and broader coverage options. Employers benefit from lower liability costs that make doing business easier. Communities benefit when insurance capacity returns and capital flows into housing and commercial development.
Protecting Progress in 2026
As the legislative session begins, it is critical that lawmakers hold the line on these reforms. Reintroducing broad one-way attorney fee provisions or reopening previous loopholes risks reversing the progress already underway. The early data show reforms are working. Letting them mature will yield continued benefits for consumers, businesses, and the entire Florida economy.
Florida’s 2023 tort reforms are stabilizing the system, lowering litigation costs, and creating a more balanced legal environment. Lawmakers should protect these gains and allow the market to continue healing and growing.