Governor DeSantis Questions Critics of Property Market Reforms
Governor Ron DeSantis continues to support the property insurance reforms adopted in late 2022. This is not surprising considering that following the reforms existing insurers have increased their appetites for additional policies, rate levels have moderated and started to decline, approximately 14 new companies have entered the market, and Citizens Property Insurance Corporation has seen its policy count decline from 1.4 million to less than 800,000.
Nonetheless, opponents of the reforms proposed several changes in the 2025 legislative session that would have reversed some of the key attributes of the 2022 changes. Last week, Governor DeSantis questioned whether lawmakers who oppose the reforms have substantive ideas that actually would improve the market. According to Florida Politics, Governor DeSantis said that when critics assert the 2022 reforms did not take the right approach, they should be asked what their solutions are. DeSantis called the Florida homeowners’ insurance market the “most complicated” in the country and maybe the world. He said that critics are not advancing ideas that will improve the market but instead are only presenting “trial lawyer subsidy” bills that will end up costing consumers more.
Governor DeSantis noted that improvements will occur even more quickly if the state is fortunate enough to enjoy an extended period without hurricanes. This is undoubtedly true, considering that even with an active hurricane season in 2024, the state has seen continuing benefits of the reforms through increased competition, an improving rate environment and stability in costs associated with losses, loss adjustment expenses and reinsurance.