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Tech-enabled litigation and AI threaten to destabilize insurance industry

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Tech-driven search engines, scam emails and data scraping are threatening to destabilize the property insurance marketplace nationwide if left unchecked, a new report finds.

The research project, by Ohio-based financial analysis firm Demotech, finds that “tech-enabled litigation instigation” is growing into a predatory, covert business model that pushes insured property owners into the litigation process often before a claim has even been filed.

In existence since 2017, the practice is growing again thanks to artificial intelligence capabilities, which can harm property owners by forcing them into a pricey lawsuit process that requires big payouts to law firms and threatens the collapse of insurance companies operating in risk-prone areas, such as Florida.

Tactics under the practice include search engine optimization and pay-per-click advertising that pushes property owners to litigants rather than to insurance companies where the insured person can file a claim. The report found the practice increases the time it takes for property owners to receive a claim and the number of claims closed without payment.

The threat has drawn the attention of U.S. Sen. Thom Tillis of North Carolina, where Hurricane Helene battered mountainous regions in the western part of the state last year, and U.S. Rep. Kevin Hern of Oklahoma, which also faces inland hurricane threats. The lawmakers have developed a proposal to impose a federal tax on the third-party litigation funding profits, which seeks to make litigation financing less attractive and therefore mitigate the growing trend.

“These coordinated, high-tech scam and email attacks exploit post-storm confusion, capitalize on consumer crises, and accelerate carrier litigation to unsustainable levels. Alarmingly, it is not just homeowners who are being victimized. It is the entire insurance industry and the U.S. transportation economy — industries which serve as a critical safety net for property owners and business stability nationwide — that are subjected to an online, covert business model built on systematic online instigation to secure contested or litigated claims,” Demotech President Joe Petrelli said.

“In one recent time period in Florida, a group of carriers that failed had a 3% market share of premiums, yet saw their market share of new, annual litigated claims grow to nearly 20%. I knew that this phenomenon of meteoric growth in new, annual litigated claims was caused by ‘something new,’ a realization that led to this groundbreaking research project, and Todd’s discoveries.”

The report highlights threats that had already existed, including “nuclear verdicts” — awards exceeding $10 million that drive insurance premiums — and “social inflation,” with a rise in insurance costs that outpaces real inflation.

But it points out the threats are mounting with the insurgence of “tech-enabled litigation instigation,” a practice that targets insured property owners seeking a claim through various business tactics and often through third-party non-lawyers. The cost to settle a claim through the litigation process can be up to 360% higher than a non-litigated claim, according to an Office of Insurance Regulation study.

Already, this litigation practice has attracted tens of billions of dollars in third-party litigation funding, the Demotech study found.

Petrelli developed the study, which was then conducted by Todd Kozikowski, a digital risk intelligence consultant and CEO of 4Warn.

The study calls for litigation reform and its authors describe the proposal from Tillis and Hern viral in addressing current litigation practices. In the meantime, the report also calls for consumer vigilance, by contacting an insurance provider directly about a claim rather than clicking a link in a pop-up or unsolicited email.



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Ash Marwah, Ralph Massullo battle for SD 11 Special Election

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Even Ash Marwah knows the odds do him no favors.

A Senate district that leans heavily Republican plus a Special Election just weeks before Christmas — Marwah acknowledges it adds up to a likely Tuesday victory for Ralph Massullo.

The Senate District 11 Special Election is Tuesday to fill the void created when Blaise Ingoglia became Chief Financial Officer.

It pits Republican Massullo, a dermatologist and Republican former four-term House member from Lecanto, against Democrat Marwah, a civil engineer from The Villages.

Early voter turnout was light, as would be expected in a low-key standalone Special Election: At 10% or under for Hernando and Pasco counties, 19% in Sumter and 15% in Citrus.

Massullo has eyed this Senate seat since 2022 when he originally planned to leave the House after six years for the SD 11 run. His campaign ended prematurely when Gov. Ron DeSantis backed Ingoglia, leaving Massullo with a final two years in office before term limits ended his House career.

When the SD 11 seat opened up with Ingoglia’s CFO appointment, Massullo jumped in and a host of big-name endorsements followed, including from DeSantis, Ingoglia, Agriculture Commissioner Wilton Simpson, U.S. Sens. Ashley Moody and Rick Scott, four GOP Congressmen, county Sheriffs in the district, and the Florida Chamber of Commerce.

The Florida LGBTQ+ Democratic Caucus is endorsing Marwah.

Marwah ran for HD 52 in 2024, garnering just 24% of the vote against Republican John Temple

Massullo has raised $249,950 to Marwah’s $12,125. Massullo’s $108,000 in spending includes consulting, events and mail pieces. One of those mail pieces reminded voters there’s an election.

The two opponents had few opportunities for head-to-head debate. The League of Women Voters of Citrus County conducted a SD 11 forum on Zoom in late October, when the two candidates clashed over the state’s direction.

Marwah said DeSantis and Republicans are “playing games” in their attempts to redraw congressional district boundaries.

“No need to go through this expense,” he said. “It will really ruin decades of progress in civil rights. We should honor the rule of law that we agreed on that it’ll be done every 10 years. I’m not sure why the game is being played at this point.”

Massullo said congressional districts should reflect population shifts.

“The people of our state deserve to be adequately represented based on population,” he said. “I personally do not believe we should use race as a means to justify particular areas. I’m one that believes we should be blind to race, blind to creed, blind to sex, in everything that we do, particularly looking at population.”

Senate District 11 covers all of Citrus, Hernando and Sumter counties, plus a portion of northern Pasco County. It is safely Republican — Ingoglia won 69% of the vote there in November, and Donald Trump carried the district by the same margin in 2024.



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Miles Davis tapped to lead School Board organizing workshop at national LGBTQ conference

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Miles Davis is taking his Florida-focused organizing playbook to the national stage.

Davis, Policy Director at PRISM Florida and Director of Advocacy and Communications at SAVE, has been selected to present a workshop at the 2026 Creating Change Conference, the largest annual LGBTQ advocacy and movement-building convention.

It’s a major nod to his rising role in Florida’s LGBTQ policy landscape.

The National LGBTQ Task Force, which organizes the conference, announced that Davis will present his session, “School Board Organizing 101.” His proposal rose to the top of more than 550 submissions competing for roughly 140 slots, a press note said, making this year’s conference one of the most competitive program cycles in the event’s history.

His workshop will be scheduled during the Jan. 21-24 gathering in Washington, D.C.

Davis said his selection caps a strong year for PRISM Florida, where he helped shepherd the organization’s first-ever bill (HB 331) into the Legislature. The measure, sponsored by Tampa Democratic Rep. Dianne Hart, would restore local oversight over reproductive health and HIV/AIDS instruction, undoing changes enacted under a 2023 expansion to Florida’s “Parental Rights in Education” law, dubbed “Don’t Say Gay” by critics.

Davis’ workshop draws directly from that work and aims to train LGBTQ youth, families and advocates in how local boards operate, how public comment can shape decisions and how communities can mobilize around issues like book access, inclusive classrooms and student safety.

“School boards are where the real battles over student safety, book access, and inclusive classrooms are happening,” Davis said. “I’m honored to bring this training to Creating Change and help our community build the skills to show up, speak out, and win — especially as PRISM advances legislation like HB 331 that returns power to our local communities.”

Davis’ profile has grown in recent years, during which he jumped from working on the campaigns and legislative teams of lawmakers like Hart and Miami Gardens Democratic Sen. Shevrin Jones to working in key roles for organizations like America Votes, PRISM and SAVE.

The National LGBTQ Task Force, founded in 1973, is one of the nation’s oldest LGBTQ advocacy organizations. It focuses on advancing civil rights through federal policy work, grassroots engagement and leadership development.

Its Creating Change Conference draws thousands for four days of training and strategy-building yearly, a press note said.



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Kevin Steele seeks insight from conservative leaders at Rick Scott-led summit

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State Rep. Kevin Steele’s campaign for Chief Financial Officer already enjoys political support from U.S. Sen. Rick Scott. The Dade City Republican attended a summit headlined by the Senator to also gain some policy insight and mentoring.

Steele was among the attendees for the Rescuing the American Dream summit held on Thursday in Washington, D.C. He said it was a quest for knowledge that drew him to Capitol Hill to hear the discussion.

“The way you do things better in the future is by learning from people who have already accomplished something,” Steele told Florida Politics at the event.

Scott gave a shoutout to Steele from the stage. The Governor already endorsed Steele, who is challenging the appointed Chief Financial Officer Blaise Ingoglia in 2026. At the summit, Scott both promoted conservative successes in the first year of President Donald Trump’s second term and laid out visions on issues from health care reform to cryptocurrency.

Steele called the panel discussions “amazing” and instructive on tackling affordability issues in Florida.

“If we don’t start addressing those things head first, we’re going to fall behind,” Steele said. “I think we’ve lost several million jobs in the state of Florida over the past six or seven years. Learning from Rick Scott and how to bring jobs back to the state is a good thing. And I think that we need to start tackling some of the big, big things that we need to attack.”

That includes addressing property insurance premiums head on and evaluating the property tax situation.

While he will be challenging a Republican incumbent in a Primary, Steele voiced caution at comparing his philosophy too directly with Ingoglia, a former Republican Party of Florida Chair with a history of animus with Scott.

But he did suggest Ingoglia’s recent scrutinizing of local governments may be starting at the wrong place when it comes to cutting spending.

“We need to start focusing on state down, instead of going to a county and pointing out flaws there,” Steele said. “There’s a lot of issues at the state level that we can address, some of which we are, some of which I’ve submitted different bills to address. I think that there’s a lot of waste and abuse at the state level that we can focus on.”



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