What happened: California’s insurance market is collapsing due to price controls and regulatory burdens, while Florida’s legal reforms have stabilized its market and lowered insurance rates.

California’s crisis: Insurance Commissioner Ricardo Lara imposed a $1 billion surcharge on insurers and policyholders to prop up the failing state-backed insurer, FAIR, which is in danger of becoming insolvent.

• Strict regulations have prevented insurers from adjusting rates for wildfire risks, leading to massive losses and a potential credit rating downgrade for State Farm, California’s largest fire insurer.

Florida’s success: Florida’s 2022-2023 litigation reforms curbed “rampant lawsuit abuse” and helped head off an insurance disaster. In fact, these tort reforms helped attract 11 new insurers to the state and shift 477,000 policies from the state-backed Citizens Property to the private market. 

• As a result, major insurers have begun lowering rates, and auto insurance premiums are also declining.

TLR Thoughts: Florida’s success highlights the benefits of state-level solutions. TLR supports maintaining state authority over insurance regulation, but that has to be coupled with a legal environment that does not reward plaintiff lawyers for pursuing meritless lawsuits that cost all Texans money through increased costs for goods and services.

Read the full article here.

What happened: Texas is the fifth most regulated state in the nation, according to the most recent State RegData rankings.

Remind me: On Dec. 4, 2024, Gov. Greg Abbott launched the Small Business Freedom Council to identify regulatory barriers for small businesses. While this is a major step toward modernizing the state’s regulatory system, the 89th Texas Legislature has an opportunity to address specific areas where change is most urgently needed.

Tell me more: Excessive regulations, particularly in occupational licensing and permitting, create unnecessary hurdles for entrepreneurs and businesses. Proposed reforms include:

• A user-friendly website consolidating all business regulations in one accessible location.
• A transparent and regular review process to ensure regulations remain effective.
• A new regulatory division to help state agencies review regulations, improve their rules and eliminate inefficiencies.

In his words: “Reforming Texas’s regulatory system is one of the most impactful steps legislators can take to improve state government and ensure Texas continues to lead the nation. By fixing outdated regulations and removing unnecessary barriers, Texas can cement our status as a dominant economic force in the U.S. and around the world.” —Judge Jeff Rose 

TLR Thoughts: Texas’s excessive regulatory framework threatens its economic competitiveness, especially for small businesses and consumers, which is why TLR is part of the Coalition for Regulatory Efficiency and Reform. TLR will support legislation this session aimed at systematically reducing red tape and preventing future accumulation of regulations. By adopting proven strategies, Texas can stimulate substantial economic growth and solidify its reputation as a leader in pro-business governance.

Read the full article here.

What happened: The New York Stock Exchange (NYSE) is establishing NYSE Texas in Dallas, further solidifying Texas’s status as a business and financial hub.

Remind me: The NYSE revealed its plans to add operations in Dallas by reincorporating its NYSE Chicago as NYSE Texas, which will be a fully electronic equities exchange.

• Texas has become a top destination for corporate relocations due to the state’s business-friendly environment. Big-name companies, including Tesla and Hewlett Packard Enterprise, have already made the move.

Worth noting: Nasdaq, another major stock exchange, also has a presence in Texas, and the TXSE Group is working to set up the Texas Stock Exchange in the state as well.

• University of Texas at Dallas Accounting Assistant Professor Kirti Sinha suggested that the presence of stock exchanges in Texas will boost investor confidence and attract more companies.

TLR Thoughts: Texas’s commitment to a pro-business environment continues to attract top companies and reinforce its reputation as an economic powerhouse. However, decades of regulatory accumulation still create challenges for businesses and consumers alike. To maintain its competitive edge, Texas must continue prioritizing smart regulatory reform, business growth and a fair legal climate that protects against excessive litigation.

Read the full article here.

What happened: A new survey from APCIA and Munich Re US revealed consumer perceptions of certain legal tactics used in civil litigation. The survey, conducted online by The Harris Poll among more than 2,000 US adults, examined views on lawyer advertising and high jury awards, among other topics.

By the numbers: 

• 67% supported restrictions on lawyer advertising to prevent excessive lawsuits.
• 68% agreed that high-value jury awards create expectations of large payouts.
• 68% indicated that nuclear verdicts would likely drive up insurance costs.

In his own words: “Reforms are needed to reduce consumer costs and improve insurance availability and affordability. The majority of Americans agree that these tactics are driving up insurance costs. We need state and federal policymakers to address legal system abuse to restore fairness and predictability of justice in the United States”—Stef Zielezienski, executive vice president and chief legal officer of APCIA

TLR Thoughts: Abusive litigation tactics are increasing the cost and availability of insurance for all Texans, and for all Americans. State and federal reforms are critical to restoring transparency, fairness and predictability in the United States legal system. 

Read the full article here.

What happened: A new report by the U.S. Chamber of Commerce found that Texans are paying almost $38 billion a year, or an extra $4,594 per Texas household, to compensate for astronomical tort costs in the form of skyrocketing insurance premiums and higher prices of most goods and services in the state.

Remind me: Tort costs include litigation expenses, claimant payouts and administrative fees.

• Texas has one of the highest growth rates in tort costs, largely due to multimillion or nuclear verdicts.

By the numbers: Lawsuits cost Texans more money every year; with the cost increasing at a rate of 9.7% a year from 2016-2022.

TLR Thoughts: The growing cost of lawsuits is putting Texas families and businesses under increasing financial strain. With insurance settlements and nuclear verdicts driving up costs, companies face higher operating expenses and consumers pay more for insurance and everyday goods. TLR is working to address the issue through the Lone Star Economic Alliance (LSEA)—a coalition of more than 900 Texas job creators, citizens and business associations from across the state.

Read the full article here.

What happened: As a founding member of the Lone Star Economic Alliance (LSEA), TLR is advocating for legislative reforms to address the rising cost of doing business in Texas—which threatens the economic health of businesses of all sizes, across all sectors.

• LSEA, BTA México and RioPlex joined forces to discuss the priority issue during a meeting at the border in late January. Nearly 50 transportation entrepreneurs from both sides of the border were in attendance.

Remind me: LSEA is a coalition of more than 900 job creators, citizens and business associations that have joined together to put a stop to abusive lawsuits that make it hard to do business in Texas and which needlessly increase the cost of consumer goods and services.

Worth noting: Rising insurance premiums, driven by lawsuits featuring inflated medical costs and misleading tactics, are draining resources businesses could use to hire new employees, expand facilities, pay taxes and even survive. 

TLR Thoughts: TLR is proud to support LSEA’s efforts to restore fairness in Texas courtrooms. By advocating for reforms to reduce the impact of excessive lawsuits on the cost and availability of insurance, TLR is helping promote Texas’s economic dynamism and job growth.

Read the full article here.

What happened: Meta is exploring moving its legal incorporation from Delaware to Texas, following its decision to relocate trust and safety teams to the state for increased neutrality.

Remind me: Meta, which owns Facebook, Instagram and WhatsApp, has been incorporated in Delaware since 2004, benefiting from that state’s respected corporate court system. 

• However, as Delaware courts have introduced uncertainty into corporate governance statutes, Texas has emerged as an increasingly attractive alternative, offering incentives, a newly launched business court specializing in complex disputes and a stock exchange. The Texas Business Court—which TLR helped create in 2023—is one of the most transformative changes to Texas’s legal system in decades.

Worth noting: Texas continues to attract businesses to the state, with major companies like Tesla and Oracle already making the move.

TLR Thoughts: As more companies seek out business-friendly states that foster innovation and minimize unnecessary legal costs, Texas has an opportunity to further solidify its role as a leader in corporate governance. This competitive advantage must be preserved by legislative action that ensures Texas’s lawsuit environment is fair and predictable and its regulatory climate reasonable.

Read the full article here.

What happened: A Houston mass tort attorney filed for Chapter 11 bankruptcy, listing over $200 million in litigation funding liabilities due to prolonged cases and rising debts.

Tell me more: Truett Bryan Akin IV, a co-founder of the mass tort firm AkinMears LLP, is struggling under financial pressure from delayed case resolutions and mounting litigation funding debt, with legal disputes over unpaid investor returns adding to the strain.

Worth noting: Lawsuits by litigation funders and other creditors are becoming more common as firms fail to repay mounting debts linked to long-running litigation. 

TLR Thoughts: This case highlights the growing financial instability within the mass tort industry, where excessive reliance on litigation funding feeds litigation but also creates unsustainable debt for law firms. It’s crucial to address the role of litigation funders in our litigation system, to restore balance, and to ensure that the legal system serves justice, not profit-driven agendas.

Read the full article here.

What happened: Gov. Greg Abbott celebrated Texas’s record job growth, with significant increases in the labor force and the number of Texans working, adding millions of jobs under his leadership.

Tell me more: Texas’ commitment to business growth and workforce development has helped it surpass national job growth, strengthening its position as the nation’s job creator.

By the numbers: Texas’ labor force hit a historic high of 15,575,900.

• 14,922,200 Texans are employed, including self-employed individuals.
• Since 2015, Texas has added over 2.5 million jobs under Governor Abbott’s leadership.

TLR Thoughts: Texas’ job growth reflects the state’s pro-business environment, supported by lawsuit reforms that reduce frivolous litigation and allow businesses to thrive without excessive legal burdens. By maintaining a legal system that promotes fairness and efficiency, Texas remains the best state to do business, attracting employers and sustaining long-term job growth. 

Read the full article here.

What happened: Texas, known for its business-friendly reputation, is burdened by decades of regulatory accumulation that create significant challenges for small businesses and consumers.

Tell me more: Excessive regulations increase compliance costs, driving up consumer prices and limiting competition. 

• Reforms in other regions show that reducing regulatory burdens can boost economic growth and enhance business opportunities.

By the numbers: Texas has 274,469 regulatory restrictions.

• A 10% reduction could grow the economy by $52 billion by 2037.
• A 40% reduction could yield over half a trillion dollars in economic growth.

TLR Thoughts: Texas’ excessive regulatory framework threatens its economic competitiveness, especially for small businesses and consumers, which is why TLR is part of the Coalition for Regulatory Efficiency and Reform. We will support legislation aimed at systematically reducing red tape and preventing future accumulation of regulations. By adopting proven strategies, Texas can stimulate substantial economic growth and solidify its reputation as a leader in pro-business governance.

Read the full article here.

What happened: Texas is not alone. Other states are experiencing lawsuit abuse, too. Indiana has enacted new tort reform measures, while Pennsylvania and Georgia are pursuing reforms to improve their legal environments.

Tell me more: Indiana now allows juries to consider the plaintiff’s seat belt usage in determining damages in an injury case and is splitting trucking cases into two phases: determining driver fault and damages first, then broader evidence on company misconduct in the second, if needed.

• In Georgia, Gov. Kemp is calling for comprehensive tort reform, warning that excessive lawsuits are driving up costs and threatening businesses.
• Reforms proposed in Pennsylvania include regulating third-party litigation funding and capping attorney contingency fees.

Worth noting: Texas set a precedent with its seat-belt-use disclosure law in 2003 and bifurcated trial requirements for trucking cases in 2021, solidifying its leadership in tort reform.

TLR Thoughts: Abusive litigation practices and the resulting economic consequences are not limited to Texas. That’s why TLR remains committed to passing legislation in Texas that eliminates abuses, makes our courts more fair and efficient and helps Texas maintain its economic leadership.

Read the full Indiana article here.

Read the full Georgia article here.

What happened: The Los Angeles wildfires have prompted discussions in Congress about expanding the National Flood Insurance Program to cover other disasters, shifting the financial burden to taxpayers across the nation.

California’s crisis: California’s insurance market is struggling due to years of suppressed rates, poor wildfire management and rising insurer liabilities.

Florida’s success: Florida tackled its insurance crisis with tort reforms that reduced litigation abuse, stabilized the market and attracted new insurers.

Worth noting: The 1945 McCarran-Ferguson Act grants states authority over insurance regulation, a system that has worked for over 80 years. 

• Federalizing insurance places the burden of state-level mismanagement on taxpayers nationwide.

TLR Thoughts: California’s insurance failures show the consequences of mismanagement, while Florida’s reforms highlight the benefits of state-level solutions. TLR supports maintaining state authority over insurance regulation and encourages policies, but that has to be coupled with a lawsuit environment that does not reward plaintiff lawyers for pursuing meritless lawsuits that cost all Texans money through increased costs for goods and services.

Read the full article here.