There’s a narrative making the rounds that Florida’s 2022 insurance reforms have “stabilized” the market and that we simply need to “stay the course.” But who exactly is this course benefiting? Because from where Florida’s homeowners are standing, there’s little to celebrate.
Let’s be clear: Florida’s insurance industry isn’t stabilizing — it’s profiting. Wildly. And it’s doing so at the expense of the very policyholders the system was designed to protect.
Take Heritage Insurance Holdings for example, a publicly traded property and casualty insurance company headquartered in Clearwater, Florida that operates primarily in catastrophe-prone areas such as Florida, the Southeast U.S., and parts of the Gulf Coast. As of April 10, 2025, Heritage Insurance Holdings' stock (HRTG) closed at $16.13. On December 16, 2022, the stock closed at $1.80. This represents an increase of approximately 796% over that period.
That’s not the sign of a distressed industry barely hanging on. That’s a windfall. Yet during this same period, policyholders haven’t seen meaningful rate relief. In fact, most are paying more — for less coverage. Deductibles have risen, coverage limits have shrunk, and claim denials are more frequent than ever.
What we’re witnessing isn’t “market correction” — it’s market manipulation, cloaked in the language of reform.
Much of the justification for these reforms centered on so-called “excessive litigation.” But let’s not forget: litigation was last line of defense for most policyholders wrongfully denied coverage or lowballed on claims. The ability to hire an attorney was one of the few tools a homeowner had to stand up to multi-billion-dollar insurance companies.
Now, that balance is gone.
The elimination of one-way attorney fees and assignment of benefits didn’t just curb abuse; it crippled legitimate policyholder advocacy. It tilted the scales fully toward insurers, leaving homeowners with fewer options and steeper financial barriers to pursue rightful compensation.
Let’s talk about “confidence.” Confidence, in any capital-dependent industry, is indeed critical — but confidence in what, exactly?
Wall Street is confident. Shareholders are thrilled. But policyholders? They’re increasingly disillusioned. Because they’re paying more in premiums than ever before while receiving weaker coverage and enduring delayed or denied claims. That’s not reform — that’s a revenue strategy.
Insurance companies are now capitalizing on favorable legal shifts, creative accounting practices, and funneling money. They’ve slashed exposure, increased rates, and seen their stock valuations surge. In the meantime, consumer protections have been dismantled.
Yes, some insurers have filed for rate reductions. But let’s read between the lines. These filings are often minor, calculated, and apply narrowly. The average Florida homeowner is still grappling with unaffordable premiums.
And those "new insurers entering the market"? Many are small, under-capitalized entities drawn in by the new rules — not necessarily by a commitment to consumer welfare but upon the idea that they can profit at exorbitant levels through creative accounting practices.
If the Florida Legislature refuses to revisit or rebalance these reforms, the message to consumers is loud and clear: you’re on your own. And worse, your premium dollars are now subsidizing industry profits, not your own protection.
Clients are coming to us with denied or underpaid claims at record levels, unsure of how to fight back in a system that now favors the insurance company by design. We believe in stability — but not at the expense of fairness. If Florida’s insurance market is to truly recover, it must do so in a way that restores power and protection to policyholders, not just profitability to insurers.
Real reform means oversight, transparency, and accountability — not just reduced legal exposure for insurers. Consumers deserve more than a hollow promise of future relief. They deserve an insurance system that actually works for them, not against them.
Let’s not stay the course. Let’s course-correct — while there’s still time to protect Florida homeowners from becoming the next casualty of this so-called recovery.