Personal insurance litigation in Florida declined nearly 25% in the first half of 2025 compared with the same period in 2024, according to the Florida Office of Insurance Regulation (OIR), which attributed the reduction to legislative changes enacted in recent years, according to BestWire.
The OIR noted that this downward trend has persisted over several years. Litigation rates dropped 23% from 2023 to 2024, and since 2021 the cumulative decline has reached as much as 36%, with the smallest annual decline still amounting to 15%.
The OIR measures litigation rates by tracking personal residential legal service of process filings. This system, established in 2021, requires policyholders to provide notice at least 10 days before initiating legal action. Failure to comply can lead to dismissal of the claim and an award of attorney fees and court costs to the carrier.
Other legislative measures in Florida included eliminating one-way attorney fees and modifying the state’s bad faith framework.
Erin Collins, senior vice president of state and policy affairs at the National Association of Mutual Insurance Companies, said the decline in litigation, combined with increased carrier participation in the market, demonstrates that tort reforms are producing the desired effects.
All of this again shows that the best way to address market challenges is to address the risks and cost drivers behind them.
Erin Collins, senior vice president of state and policy affairs at the National Association of Mutual Insurance
Mark Friedlander, senior director of media relations at the Insurance Information Institute, said fewer lawsuits have eased pressure on carriers and led many to file for statewide rate reductions or maintain flat rates during the past 18 months.
He added that the decline has also attracted new carriers to the state and reduced the policy count at Citizens Property Insurance Corp., the state-backed insurer.
New and existing insurers want to grow their market share in Florida because they are confident the improved litigation environment will enable them to write profitable business.
Mark Friedlander, senior director of media relations at the Insurance Information Institute
“A competitive market is benefiting consumers with competitive pricing. Numerous insurance agents have reported they are generating significant year-over-year premium savings for their customers when shopping policies at renewal.”
