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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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Jane Castor says Tampa will ‘finish strong’ amid construction and transit plans

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With just over a year remaining in her second and final term, Tampa Mayor Jane Castor’s administration is shifting into a “finish strong” phase to wrap up major redevelopment projects while positioning the city for continued growth under its next Mayor.

Castor told Florida Politics that she is focused on completing long-planned initiatives in the coming year, and creating what she called “project launch pads” for the next administration after nearly seven years of rapid development and population growth.

“We’ve accomplished a great deal in just a bit less than seven years,” Castor said. “Our city’s grown dramatically. We’re focused on finishing up some of those projects and getting other projects ready for the next administration.”

Castor said recent city budgets have emphasized investment in transportation, affordable housing and workforce development.

Transportation remains Tampa’s biggest challenge, she said, calling it the city’s “Achilles heel.” Castor pointed to the defeat of Hillsborough County’s voter-approved transportation surtax as a major setback for the region, though she emphasized that local governments have continued pursuing alternatives.

“We mourned the loss of that, but we didn’t stop,” Castor said. 

Instead, Tampa and regional partners turned to grants and federal funding, securing nearly $4 million through a U.S. Department of Transportation program known as the Regional Infrastructure Accelerator. The grant supports planning for large-scale, multicounty transportation projects across Hillsborough, Pinellas and Pasco counties, including both local and regional transit options.

One proposal under consideration would expand Tampa’s streetcar system beyond its current footprint in Ybor City, Channel District and downtown, extending north into Tampa Heights. Castor said the city is also examining longer-term regional transit connections, including potential airport links and public-private partnerships to help finance future projects.

Meanwhile, construction across Tampa continues at a rapid pace, particularly along the riverfront and in historically underserved neighborhoods.

Castor highlighted projects nearing key milestones, such as the West River redevelopment in West Tampa — where a new Riverwalk extension is under construction. Castor also noted the Rome Yard project near Rome Avenue and Columbus Drive, a 16-acre mixed-use development now rising out of the ground.

In East Tampa, the city recently held a ribbon-cutting for the new East Tampa Recreation Center, a sprawling, multiblock complex that Castor said will be among the best facilities in Tampa’s parks system once completed later this year.

Downtown and surrounding neighborhoods are also seeing a wave of new residential construction. Castor cited multiple high-rise developments near downtown, additional riverfront condominiums along Kennedy Boulevard, student housing tied to the University of Tampa, and the long-anticipated opening of the five-star Pendry Hotel near the river this year.

Ybor City and the Channel District remain hot spots for redevelopment as well, with Water Street Tampa entering its second phase and developer Darryl Shaw advancing residential, office and retail projects, including a food hall, near the Gas Worx site.

“The city is just on fire,” Castor said. “I keep saying I’m going to change our city bird to the crane, there’s cranes all over the city.”

As lawmakers convene in Tallahassee for the ongoing Legislative Session, Castor said her top request is simple: leave property taxes alone. 

Property taxes remain the primary revenue source for cities and counties, she said, and are already constrained by Florida’s Save Our Homes cap, which limits annual increases regardless of rising property values.

“Any cuts to property tax would be cuts to police and fire, to our parks and recreation, and to all the other city departments that rely on property tax funding,” Castor said.

Castor also addressed ongoing discussions surrounding professional sports facilities, noting that planned improvements to Raymond James Stadium and Benchmark International Arena are already accounted for through Hillsborough County’s voter-approved Community Investment Tax extension. She said city and county officials are meeting with the Tampa Bay Rays as discussions continue around a potential baseball stadium site near Hillsborough Community College.

Looking beyond her tenure, Castor said she does not plan to seek another political office, but intends to remain active in civic life after leaving City Hall.

“I don’t have any plans politically, but I definitely will stay involved in the community,” Castor said. “I was born and raised here in Tampa, so I’ll always be involved — participate on boards, volunteering, whatever way I can — to help continue to grow this great city.”



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Shared services agreement falls flat with Broward voters

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If something isn’t broken, don’t fix it — especially not behind closed doors.

That’s the message coming through in a new poll by The Tyson Group gauging public sentiment on a proposed shared services agreement between the North and South Broward Hospital districts.

The survey asked likely Broward County voters whether they approve or disapprove of the health care services currently available in the county. Nearly two-thirds (65%) say they approve, including 30% who strongly approve. Just 22% say they disapprove of Broward’s health services.

When asked whether the North and South Broward Hospital Districts should be allowed to change how they operate “without triggering the legal requirements, transparency, or voter approval normally required for a full merger,” nearly three-quarters of respondents (73%) said no, including 62% who said “definitely no.”  Only 16% say the Districts should be allowed.

The polling comes after Sarasota Republican Sen. Joe Gruters and Dania Beach Republican Rep. Hillary Cassel filed bills that would authorize two or more special hospital districts to jointly form, participate in, or control a wide range of collaborative health care ventures — including public or private, for-profit or nonprofit entities — anywhere within their combined boundaries.

Notably, the legislation would explicitly give the Districts and their partners immunity from state action, allowing them to collaborate regardless of anticompetitive effects or potential conflicts with state or federal antitrust laws.

When similar bills were filed last Session, critics warned that it amounted to a backdoor merger that would bypass public scrutiny, regulatory review and possibly a countywide referendum otherwise required under state law. Memorial Healthcare System employees, physicians and community advocates raised alarms about transparency, governance and the potential shifting of financial burdens from North Broward’s struggling Broward Health system onto South Broward taxpayers.

“Once voters understood that the shared services agreement would go into effect without public review or voter approval, it was impossible to generate support. Each message we tested reinforced the negative perception that the shared services agreement was a shady deal designed to circumvent quality control,” the polling memo reads.

Messaging tests in the survey included transparency, lack of a taxpayer vote, financial mismanagement, and consolidation of power — on each front, more than 60% of those polled express concern while no more than 10% are unbothered.

By the end of the poll, just 21% said they supported a shared services agreement, with 63% in opposition, including 47% who say they “strongly oppose” the deal.

The survey was conducted Dec. 8-10. The sample includes 500 likely voters in Broward County and carries a margin of error of 4.38 percentage points.

___

Jesse Scheckner of Florida Politics contributed to this report.



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Matt McCullough joins race to replace Matt Carlucci on Jacksonville City Council

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A third candidate has joined the race in Jacksonville City Council at-large Group 4 to replace term-limited Matt Carlucci.

“After thoughtful discussions and with the support of my family, I am excited to officially announce my candidacy,” Matt McCullough said in a statement announcing his bid.

McCullough, a former Navy pilot who flew during the global war on terror in Operations Iraqi Freedom, Enduring Freedom and Active Endeavor, and has received two Air Medals, Navy Commendation Medals, a Meritorious Service Medal, and recognition as both Combat Aircrew of the Year and Pilot of the Year.

He currently is North Florida’s Navy Emergency Preparedness Liaison Officer, and believes that his military background is a unique value-add as he enters politics.

“As a veteran, I know what leadership and delivering results looks like. Jacksonville deserves a city government that works to put our residents first, keeps our neighborhoods safe, and invests responsibly in our future,” McCullough said. “I’ve had the honor of wearing our nation’s uniform and lead under pressure. I am ready to bring that leadership to City Hall on day one and continue my service on the Jacksonville City Council.”

Carlucci has yet to endorse in this race between three Republicans, in which a real front-runner has yet to emerge.

April Ethridge, an Army vet with an MBA, has raised just $1,550 after being in the race for the better part of 2025.

Andrew McCann, who made his career in medical services before he “made the pivotal decision to step away from corporate life to focus on his family, personal growth, and the betterment of Jacksonville,” raised and self-funded $13,100 since entering the race at the end of October.

Qualifying runs from noon on Jan. 11, 2027, to noon on Jan. 15, 2027. The First Election is March 9, 2027, while the General Election, which sees the top two finishers square off regardless of party label unless someone gets a majority in March, is May 18.



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