In a recent Senate Banking Committee hearing, Ohio Republican Senator Bernie Moreno asked a panel of insurance experts a timely question: 

We should all want to lower the cost for consumers. This is certainly not a Republican or Democrat issue. It’s an American issue. What is the role of excess litigation in driving the cost of up insurance?

While two witnesses demurred, Center for Industrial Progress President Alex Epstein pointed out that excessive litigation “makes everything worse,” calling it “a cancer on the country,” especially with regard to environmental and permitting reviews for construction projects.  

Robert Gordon, Senior Vice President of Policy Research and International at the American Property Casualty Insurance Association cited the “enormous success” Florida has had since they adopted lawsuit reform. Gordon noted: 

[Excess litigation is] very important, significant component of the increasing costs. I mean consumers want a legal system that’s fair and timely and reasonable and our system fails on all accounts. You see a small number of people getting rich with these escalating mega verdicts and that means that all consumers have to pay for that in the form of higher prices. And the tort tax on Americans is currently $4,200 annually on American families. The United States is an extreme outlier compared to other nations on how much money is drained away from litigation. It’s really become a big business for some of the plaintiff lawyers, and that’s why we’re seeing the enormous increase in the legal advertising…Florida has had enormous success in reforming their system. At one point, they had about nine percent of the homeowners claims, but about seventy nine percent of the homeowners litigation in the country. Now with some reforms they have dramatically reduced the litigation and we actually saw that both the reinsurance and primary insurance rates in real terms actually came down, declined in Florida despite all the cost increases you’re hearing about. They were able to reduce their insurance rates and make it more affordable for consumers because of that legal reform.

Sen. Moreno is right: reducing costs for hardworking Americans should be a bipartisan priority.