New Analysis Finds Florida Tort Reforms Deliver Billions in Economic Benefits, Lower Insurance Costs, and Strengthen Market Stability

WASHINGTON - The American Property Casualty Insurance Association (APCIA) today highlighted a new economic analysis from The Perryman Group showing that Florida's recent tort reforms are delivering significant benefits to consumers, job creation, and the state's overall business climate. The report, The Economic Benefits of Effects of Tort Reform on Property and Casualty Insurance Rates in the State of Florida, outlines the measurable economic and fiscal gains resulting from reforms enacted in recent years.

According to the analysis, major legislation- including SB 2-A and HB 837-has helped rebalance Florida's civil justice system, reduce excessive litigation costs, and stabilize the state's insurance market. These reforms have already led to substantial reductions in property and casualty insurance costs, increased private-market competition, and meaningful economic gains across the state.

Key Findings from The Perryman Group Report

• Florida's tort reforms have driven an average 14.5% reduction in property and casualty insurance costs compared to what would have occurred without reform.

• Lower insurance costs and improved market stability have contributed to more companies entering or returning to the Florida market, expanding choice and competition for consumers.

• These cost savings generate more than $4.2 billion in annual gross product and support approximately 29,370 jobs statewide, including multiplier effects.

• The reforms also produce substantial fiscal gains each year - $206.6 million in new state tax revenue and $155.3 million for local governments across Florida.

• By reducing excessive litigation, the reforms help curb unpredictability, lower insurance premiums, and improve efficiency across key industries.

"Florida's tort reforms are achieving exactly what policymakers intended - bringing balance to the civil justice system, reducing excessive costs, and strengthening the state's economic foundation," said Stef Zielezienski, APCIA's executive vice president and chief legal officer. "The Perryman analysis confirms that these reforms are driving down insurance costs for consumers and businesses, encouraging insurers to return to the market, and generating billions in economic activity that benefits every corner of the state.

"As litigation systems become more balanced and predictable, families, job creators, and communities see results - from more affordable insurance to increased economic opportunity.

"In addition, the report notes that the benefits of tort reform will continue to compound over time, further improving Florida's legal climate, stabilizing insurance markets, and promoting long-term economic growth.

"APCIA commends Florida lawmakers for taking meaningful action to reduce excessive legal system costs while preserving the ability of legitimately harmed individuals to seek fair compensation. We encourage legislatures across the country to build on Florida's example and enact reforms that deliver real savings for consumers and strengthen local economies."

The report is available here.