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How Florida avoided California’s insurance crisis — and why it must stay the course

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A few years ago, Florida’s insurance market was on the verge of collapse. Homeowners faced skyrocketing premiums, insurers were going bankrupt or fleeing the state, and Citizens, the state-backed insurer of last resort, was growing at an unsustainable pace.

The problem wasn’t hurricanes or bad luck — it was a broken legal system that incentivized fraud and endless lawsuits, threatening homeownership and the broader economy.

Then, in a rare moment of political clarity, Florida lawmakers acted. Between 2019 and 2022, they enacted sweeping reforms to stabilize the market. They took on the trial bar, curbed predatory lawsuits, and eliminated one-way attorney fees that had turned Florida into the lawsuit capital of the country.

The result? The insurance market began to recover.

But now, some want to roll back these reforms. That would be a mistake. If Florida needs a cautionary tale, it should look no further than California.

For years, California has buried its insurance market under layers of regulation, making it nearly impossible for insurers to operate sustainably. The state prohibits insurers from using predictive risk modeling, meaning they must base rates on outdated historical data rather than account for rising wildfire risks. The process for rate approvals can take years, forcing companies to either write policies at a loss or exit the market entirely. Many have chosen the latter.

The result? Insurers are abandoning California, leaving homeowners with fewer choices and higher premiums. Hundreds of thousands of policyholders have been forced into the California FAIR Plan, the state-run insurer of last resort, which was never designed to handle this level of demand. As the private market shrinks, the burden on the FAIR Plan grows, pushing costs even higher.

California’s challenges aren’t just about regulation. The state faces rising wildfire risks and soaring rebuilding costs, making home insurance more expensive. However, instead of adapting, California has doubled down on outdated policies that make it even harder for insurers to operate. That’s why well-established insurers like State Farm and Allstate have stopped writing new policies in the state.

This isn’t consumer protection. It’s a slow-motion collapse of the state’s insurance system, driven by policies that ignore economic reality.

Florida, by contrast, has spent years digging itself out of an insurance crisis. In 2022, only 16,000 policies moved from Citizens back into the private market. By 2024, that number had surged to 477,000 — a nearly 3,000% increase. Insurance lawsuit filings have dropped by nearly 70%, reducing one of the biggest cost drivers of higher premiums.

These reforms didn’t just happen. They required political courage, standing up to entrenched interests that benefited from the old system. But now, those same interests want to unwind these policies, claiming they went too far. If they succeed, Florida will be right back where it started.

There’s another piece of the puzzle that often goes unnoticed: reinsurance.

Florida insurers rely on reinsurance — essentially, insurance for insurance companies — to spread the risk of major storms. Most of this reinsurance comes from global markets, where investors constantly evaluate risk. These companies are not charities; they will raise rates if they believe Florida’s legal and regulatory environment is becoming unstable again.

Since Florida’s reforms, reinsurers have responded positively, providing more affordable coverage to primary insurers. But if policymakers reverse course, it would send a clear signal to reinsurers that Florida is returning to its old ways — giving them an excuse to hike rates. Those costs would be passed directly to homeowners.

Florida either sticks with policies that stabilize the market or follows California’s path into crisis. The state must avoid overregulation that drives insurers out and forces homeowners into state-backed coverage. A thriving market requires competition, stability, and predictability, not artificial price controls that distort incentives.

Florida lawmakers took bold action to fix the insurance crisis. Now, they need to have the discipline to stay the course. The reforms are working. The system is stabilizing. The momentum is real.

The worst thing Florida could do now is throw it all away.

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Former state Sen. Jeff Brandes is the founder and president of the Florida Policy Project.


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Florida unemployment rate in January shows first increase in months

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Florida’s jobless rate increased for the first time in about a half year to start 2025.

FloridaCommerce released the January figures showing that the unemployment rate came in at 3.5%. That’s the first increase in about a half year.

The rate held steady at 3.4% for the back half of 2024. Prior to that, the rate remained at 3.3% for most of early last year.

There were 390,000 people out of work in January in Florida out of a total labor force of 11,188,000 people in the state. That total labor force figure is the highest number Florida has ever seen.

“Florida continues to prove that leadership and conservative fiscal policies drive success,” said Gov. Ron DeSantis. “We will keep the momentum going by insisting on reducing government spending, continuing to eliminate bureaucracy, and finding more tax reductions for Floridians.”

While Florida’s jobless rate increased in January, it still remains lower than the national rate, which is 4%. The Sunshine State has maintained a lower jobless figure than the national number for 51 straight months.

Miami-Dade County had the lowest unemployment rate in the state for January at 2.4%, slightly down from December’s 2.5%. But compared to a year ago, January’s unemployment rate saw a 0.5-percentage-point increase from last year.

Sumter County had the highest unemployment rate in the state in January at 6.9%.

Among major metropolitan areas in Florida, Fort Myers and Pensacola shared the dubious distinction of having 4% unemployment rates in January, the highest among large metro areas. Both were increases month-to-month and compared to January 2024.

Jacksonville and Tampa each had a 3.8% unemployment rate in January. Both were increases from a year ago, and each had an increase from the December unemployment rate.

Palm Beach County registered a 3.7% jobless figure in January. That figure was also up for the month and the year-over-year comparison.

The Orlando area also had an increase in the jobless figure, coming in at 3.6%. As was the same with other major metro areas, that figure was an increase for the month and the year.


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Blaise Ingoglia proposals giving voters new term-limit powers clear first Senate hurdle

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Two proposals from Sen. Blaise Ingoglia that could cap the tenures of long-standing legislators in Tallahassee and throughout the state have cleared the Senate Ethics and Elections Committee.

First, the committee approved SJR 536, which proposes a constitutional amendment on the 2026 General Election ballot.

It would potentially block legislators who served two full terms in the Senate and four years in the House (16 years total) from returning for more time in the legislative branch.

An amendment from the temporarily absent Sen. Erin Grall that was presented by Jenn Bradley would have relaxed the cap to 24 years total. But it was deemed unfriendly by the sponsor and failed by a 3-3 vote.

Bradley is concerned by the “lifetime ban” that could result from Ingoglia’s measure, though she acknowledged the “ping pong” of legislators between one office and the other.

“If you serve and years later you want to come back and serve your community, I think that’s the most American thing you can do,” the Clay County Republican said.

Ingoglia is open to a “time certain” element to the language that could open up potential returns after a certain point for legislators, and that theoretically is something that could be seen at a future committee stop.

Monday’s committee also approved SJR 802, which seeks a separate amendment setting eight-year term limits for County Commissions and School Boards, though terms of office that started before the 2022 General Election would be off the clock under this proposal.

Bradley proposed a change to this bill as well, starting the clock with the 2026 election and extending the term limit to 12 years. That amendment, also filed by an absent Grall, failed as well.

Stakeholders from around the state slammed Ingoglia’s measure in comment ahead of debate and the vote.

Jeff Scala of the Florida Association of Counties protested the proposal’s “one-size-fits-all approach,” saying the amendment would block the popular will in individual counties.

Wakulla County Commissioner Ralph Thomas said the “distant, uniform mandate … flies in the face of principles upon which our country and state were founded” and that the bill is an “affront to the spirit of liberty.”

Debate transcended party lines.

Vice Chair Mack Bernard, a Democrat, said he supported the bill but worried it would hurt the interest of small counties and saw “work that could be done.”

Grall, who arrived too late to get her amendments onto the bills, spoke of the need for “institutional knowledge” and said she was a “no” on the bill because the “number is wrong.”

“Eight’s the wrong number,” Grall said.

Ingoglia said polling showed voters wanted eight-year term limits.

“All we’re saying is put it on the ballot,” the Spring Hill Republican said.

Both Senate measures have two committee stops ahead. The House companions for each have not been heard, but both have only been referred to two committees total.


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Florida’s heartland needs EV infrastructure, not more barriers

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Florida is at a pivotal moment.

Our state now has over 400,000 registered electric vehicles (EVs), the second-highest in the country and consumer demand for clean transportation continues to grow, driving a critical need for charging infrastructure, especially in rural areas and evacuation zones. Unfortunately, proposed efficiency audits threaten to stall progress, discarding millions in federal grant funds while pushing rural communities further behind and exposing them to continued soaring gasoline prices.

Over the last six years, Gov. Ron DeSantis and the Republican Legislature have focused on striking a balance to make sure Florida is ready to embrace the future while ensuring fiscal conservancy. The Florida Department of Transportation’s (FDOT) recent study cited that for every dollar invested in transportation the state generates a return of $4.40.

Recognizing that EV adoption continues to accelerate with 1 in 10 new vehicles sold in Florida in Q4 2024 being electric, FDOT created the state’s Electric Vehicle Infrastructure Deployment Plan in 2021. However, despite ranking second in the nation for registered EVs, Florida’s charging infrastructure isn’t keeping pace, with rural regions lagging the most and critical gaps in coverage still remaining.

Last year, Florida spent time and money deploying temporary mobile EV charging stations along Interstate 75 and Interstate 4 during Hurricane Milton to meet the demands of residents along evacuation corridors and in rural areas. After both Hurricane Milton and Helene, Florida’s EV stationary charging stations were up and running swiftly, while gas stations struggled for weeks with long lines and inadequate fuel supplies.

Investing in permanent EV charging infrastructure along evacuation routes and in rural areas would cut costs, improve efficiency, and increase resilience — helping Floridians before, during and after disasters.

Rural communities from Immokalee to the Panhandle continue to wait as new and unnecessary bureaucratic barriers slow funding distribution and create uncertainty. With rural drivers spending 30% more on transportation annually than urban drivers and with limited public transit options, reliable EV infrastructure will be crucial to reducing costs and meeting their community’s needs.

Creating new barriers and task forces isn’t just red tape — it prevents rural Floridians from saving over $10,500 on the lifetime of their EV purchase, savings they’ll miss without access to charging stations.

Investing now in future-ready infrastructure is not only efficient, it’s essential to keep Florida ahead of the curve. Our state’s leaders have long championed cost-effective, market-driven solutions that reduce government waste while delivering real savings to everyday Floridians.

The transition to electric vehicles presents an opportunity to uphold those values — reducing transportation costs, increasing fuel independence and making rural communities more resilient — regardless of your ZIP code. By funding mobility solutions today, we ensure Florida is prepared for tomorrow’s transportation needs, reducing long-term costs and positioning the state as a leader in sustainable innovation.

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Ali DySard is a senior policy and program specialist with the Environmental Defense Fund.


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