The American Property Casualty Insurance Association (APCIA) today outlined its top priorities for the 2022 Legislative Session, which include: working with lawmakers to build upon the 2021 reforms to help stabilize Florida’s ailing property insurance market and protect consumers from rising home insurance costs; supporting meaningful legal reforms to rein in widespread lawsuit abuse; and ensuring any legislation to repeal or reform Florida’s no-fault auto insurance system leads to consumer cost savings. Additionally, APCIA will work with the business community to address data security and privacy issues.
“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.”
Property Insurance Market Reforms
Florida homeowners are facing skyrocketing property insurance costs as the market continues to buckle under pressure from a mountain of litigation and billions in recent losses from natural disasters. Recent data from the Florida Office of Insurance Regulation shows that Florida accounted for 8 percent of all homeowners’ insurance claims in the U.S., but 76 percent of all homeowners’ insurance lawsuits in the country.
“Florida lawmakers passed, and Governor 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,” continued McFaddin.
Florida’s No-Fault Auto Insurance System
APCIA will work with lawmakers to ensure any legislation to repeal or reform Florida’s no-fault auto insurance system provides the necessary cost control measures and safeguards to prevent rampant fraud and increased lawsuit abuse – two key cost drivers in the Florida auto insurance market. Productive and meaningful changes to the no-fault system must include reforms to Florida’s bad faith laws that will help lower auto insurance costs for consumers.
“Any attempt to eliminate or reform Florida’s no-fault auto insurance system must result in cost-savings for drivers,” said McFaddin. “Repealing Florida’s no-fault auto insurance system without addressing much needed bad faith reforms could lead to higher costs and increased litigation.”
Data Security & Privacy
Another key priority for APCIA and the business community is data security and privacy. The Florida Legislature is likely to consider legislation on whether consumers can opt-out of companies selling their personal data and if they can sue companies over any violation of the law.
“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,” added McFaddin.
The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions—protecting families, communities, and businesses in the U.S. and across the globe.