Published by Florida Politics. Written by Scott Johnson, AAI, CAE. February 4, 2026
Maybe you read my last opinion on trial lawyers targeting insurance affiliates. The Trial Bar claims there’s a secret machine causing your home insurance premiums to rocket. They’ve labeled it the “Affiliate Siphon.” They stood on the courthouse steps calling affiliated entities performing service work for insurers part of a “dark ritual” to hide profits, while premium payers suffered.
But a funny thing happened on the way to the apocalypse. Legislated tort reform put the kibosh on frivolous lawsuits and rates went down. Oops!
And the drop was substantial. According to data from the Office of Insurance Regulation (OIR) Florida rates went down while 33 other states had double digit increases. Data shows that of 185 residential Florida rate filings, none were for increases. None! Even Citizens Property Insurance Corporation—the state’s insurer of last resort—was ordered to reduce its rates.
In fact, things ae looking good enough that 17 additional insurers are now giving Florida’s homeowners market a go.
Florida’s home insurance market is doing something disingenuous trial lawyers promised (hoped) it never would. It’s healing. For the first time in a decade, the synchronized wailing of the lawsuit lobby sounds more like a transparent attempt to point fingers at others.
The Rate Filing Reality Check
The trial bar’s narrative is typical and simple: “Insurers aren’t losing money; they’re just moving it to their sister companies!”
If that were true—if these affiliate structures were really just a one-way valve for “disappearing” money—then insurance rates wouldn’t come down as they are. Why would a “shadowy cabal” ever stop siphoning? And why would so many insurers declare bankruptcy to end the largesse?
OIR data recently published by the Governor’s Office is incontrovertible. Since the historic legislative reforms popped the litigation balloon, Florida’s market hasn’t just stabilized—it has pivoted. And other states are beginning to take notice.
Who Gets the Credit?
The trial lawyers were more than happy to blame affiliated entities for the hikes. So, where is the press release giving them credit for the drops?
By keeping functions in-house, Florida insurers have been able to pass the tort reform savings back to consumers faster than a fragmented third-party model ever could.
Fact is, the trial bar never cared about the accounting. They cared about their litigation schemes (Assignment of Benefits and One Way Attorney fee’s) that paid for the high-octane fuel in their private jets. When lawmakers finally cut the fuel line, trial lawyers didn’t admit they were the problem. They misdirected—pointing fingers instead at the decades old, proven affiliate model.
Affiliate Entities are the solution, not the Problem
The companies that use affiliated entities are often the same ones currently leading the charge on rate decreases. Why? Because when the litigation tax was removed, these efficient companies were the first ones with the “room” in their budgets to lower premiums.
An Ironic Bottom Line
The trial lawyers are currently in a difficult spot. It’s hard to whine about “siphoning” affiliates “hiding all the money” while they reduce rates. Nor can they celebrate rate decreases from tort reforms that shut down their own ATM.
Therein lies the irony–turns out the bogeyman trial lawyers have been pointing at all this time wasn’t an “Affiliate Siphon” … it was a mirror!
Scott Johnson, AAI, CAE, is an independent consultant, expert witness and author of five books. His latest book from Amazon details abusive attorney practices and is titled: Collapse of an Evil Empire. Website: www.johnsonstrategiesllc.com.
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