Florida’s legal reforms: a turning point for insurance litigation and why Bermuda should care

Florida’s multiyear legal overhaul of its insurance litigation landscape has gone from headline policy reform to observable market impact. Once notorious for litigation abuse in property insurance — where, before reform, the state logged only 8% of US property claims but up to 78% of property claims litigation — Florida’s reforms are now seen as driving meaningful shifts in litigation volume, insurer behaviour and market dynamics.

Speaking exclusively to Bermuda:Re+ILS following on from his public conversation with Florida Governor Ron DeSantis at the November PwC Reinsurance Summit, John Huff, CEO of the Association of Bermuda Insurers & Reinsurers (ABIR), explained that, for a market like Bermuda’s, which is deeply intertwined with US property catastrophe, Florida’s experience is more than local politics. It’s a real-world case study in how legal frameworks shape risk, capital flows, underwriting results and portfolio diversification.

What has changed and why it matters

Over the past four years, Florida has witnessed a series of reforms aimed squarely at litigation drivers that had made the state costly and unpredictable for insurers, particularly HB 837 which eliminated “one-way” attorney fees (which had historically meant only prevailing plaintiffs could recover attorney costs, creating powerful incentives to sue even low-value claims) as well as tightening claims timelines and procedures, including deadlines for new and supplemental claims.

The Assignment of Benefits (AOB) abuse has effectively been banned, which has prevented contractors or attorneys from pursuing litigation in the place of the policyholder, which sometimes occurred without the policyholder's knowledge. And further, bad faith litigation thresholds were increased, which makes it more difficult for routine claims to escalate into large-scale lawsuits.

These changes were controversial and hard-fought. Some proposals surfaced in 2025 that could have reversed key components of the reform, including reinstating broader attorney fee awards, but they stalled or failed to pass.

Huff exclaimed that: “Governor DeSantis came in in 2022-2023 and really took on the political establishment in Florida. He showed leadership and followed through; there have been a couple of attempts to roll back those reforms, but he was very strong on the point that consumers are feeling the effects, and they should not be rolled back.”

The previous imbalances with litigation claims had kept many carriers and capital on the sidelines and driven up insurance pricing and frictional costs. Huff credited reform with bringing competition back, noting that 17 new carriers have entered the market.

What Bermuda re/insurers should watch

For Bermuda’s re/insurance community, accustomed to writing Florida property cat risk and with deep engagement in specialty P&C markets, Florida’s reform yields several relevant lessons.

The legal environment directly influences the underwriting landscape, with reductions in litigation exposure lowering loss costs, improving rate modelling and adequacy, and increasing predictability — all key to profitable underwriting.

As private insurers return, Citizens Property Insurance Corporation shrinks and new capital flows in, reinsurance capacities can be redeployed. This benefits Bermudian reinsurers that traditionally support US property cat risk, but also underscores the importance of data-driven underwriting and predictive modelling.

Huff recalled the historical interplay that brought Bermuda to the forefront of Florida’s insurance market 33 years ago: “Governor DeSantis’ visit to Bermuda was truly a home run for folks following the insurance industry. Florida is such an important state, and I feel a kindred spirit toward it because our association began right after Hurricane Andrew, when the US carriers retreated from Florida after vowing it too volatile, politically and weather-wise.

“At that time, reinsurance was still very much a relationship business, and not as analytical and data-driven as it should have been. Capital around the world then looked for a place to land, and Bermuda stood out mainly because of our speed to market, the commercial mindset of the regulator and our embrace of data analytics and modelling to underwrite portfolios.

“Florida, practically overnight, switched from an established large carrier market to a more local agent-driven market that relied heavily on reinsurance, and that's where the modern Bermuda property cat business originated.

“That was 33 years ago, and many of those carriers that landed in Bermuda helped to establish ABIR. Most of them are still around, some through mergers and acquisitions.”

Portfolio diversification remains critical. Huff, turning to the broader picture, stressed the power of the overall impact, stating that a healthy Florida market “lifts all boats”: it underpins risk-sharing capacity that enables writing across broad spectrums of risk. The non-correlated benefit of a stable Florida book feeds global strategic portfolios.

Bermuda’s speed to market and regulatory mindset were credited with attracting US carriers decades ago. The ongoing Florida–Bermuda dialogue — including recent meetings between Florida’s Insurance Commissioner and the Bermuda Monetary Authority — highlights the value of cross-jurisdiction collaboration in economic development and risk management.

Commenting on the visit, Florida Insurance Commissioner Mike Yaworsky told Bermuda:Re+ILS that: "Joining Governor Ron DeSantis on a business development mission with Bermuda reinsurers was extremely beneficial for Florida’s resurging insurance market. We were able to have a pivotal roundtable discussion with global reinsurers and confirm further relational commitments that will continue to influence our state’s market. I was especially proud to tout our state’s historic legislative reforms, thanks in large part to Governor DeSantis’ leadership, and underscore how the momentum in our market is strong."

Caveats and continuing challenges

Market improvement does not mean all problems are solved and litigation reform does not eliminate litigation entirely — but it does de-incentivise abusive suits and reduce legal expense volatility.

Huff remarked: “We need to look at the pressure points in the insurance markets. I think one of the future issues for all of us to consider is the affordability and accessibility of coverage.

“Right now, we're in a cycle position where there is adequate capital and capacity at the right price. I think rate adequacy is still very important, but governors and commissioners can make a difference in the US.”

Florida’s legal reforms are an example of how, according to Huff, “governors and state legislatures can make a real difference.” For Bermuda’s re/insurance community, a key provider of capacity and expertise for US exposures, Florida’s experience reinforces a fundamental market truth that legal frameworks shape risk, competitive dynamics and capital flows.

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