The CEO of Florida’s state-backed insurance company said the 55,247 residential insurance lawsuits filing jump between 2013 and 2018 has costs the state’s policyholders an extra $1.38 billion in premiums, Insurance Business America reports.
Barry Gilway told the state’s Senate Banking and Insurance Committee that litigation adds about $25,000 to resolving a claim. Given that there were 82,663 lawsuits against insurers last year, which is up from 27,416 just five years ago, costs have added up to boost insurance premiums for policyholders across the state. He pointed to the assignment of benefits issue as a key driver of the increased litigation.
State Sen. Doug Broxson, the chairman of the committee, has already filed a bill that would limit when and how attorneys can collect fees in assignment of benefits and other insurance lawsuits.