Florida’s legislative sessions kicked off recently, and once again, insurance reform was at the forefront as insurers stress the need to re-evaluate Florida’s insurance market. This year, however, with significant rate hikes and insurers tightening the reins on coverage, stakeholders and industry followers believe 2021 insurance reform is more important than ever.
Payer activists, insurance companies, brokers, and realtor associations are asking Florida politicians to pass legislation that would reduce the number of lawsuits and insurance premiums that consumers are paying.
According to an Insurance Journal article, excessive lawsuits, contractor systems, multiple years of big catastrophes in a series, and the rising cost of reinsurance are all responsible for Florida’s domestic insurers’ declining financial situation.
The industry is sponsoring many measures that they claim would help stop the violence, but as a result of the pandemic, these bills are fighting for consideration in an unprecedented legislative session.
Since insurers won a seven-year fight for assignment of benefits (AOB) insurance overhaul in 2019, creditors admit it would be challenging to force some policymakers to approve the legislation. Those laws were intended to help the insurance industry cut down on expenses, and new OIR research suggests that the legislation is having a significant effect on lowering AOB lawsuits.
The majority of customers are unaware of why their insurance premiums are growing, and they are particularly disappointed because they have never lodged a lawsuit.
If you have questions about insurance or you’re dealing with an insurer, the Miami insurance attorney law firm of Alonso & Perez, LLP may help. Talk to a Miami insurance settlement lawyer regarding the details of your potential case.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.