Florida Insurance Costs 14.5% Lower Due to Reforms, New Report Reveals

Florida’s landmark legislative changes in 2022 and 2023 have significantly impacted the state’s economy. These reforms have led to lowered insurance costs, freeing up funds for other investments and attracting new companies to the state, according to a report by the Perryman Group, an economic analysis firm.

Based in Waco, Texas, and led by renowned economist Ray Perryman, the firm calculated that property-casualty insurance costs in Florida are now approximately 14.5% lower than they would have been without the historic reforms. This reduction has resulted in an estimated increase in business activity of around $4.2 billion and the creation of over 29,000 jobs, as concluded in the report.

The country’s largest property insurance advocacy group stated that the report quantifies the anticipated outcomes following the passage of Senate Bill 2A in late 2022. This law ended assignments of benefits and one-way attorney fees, effectively curbing excessive claims litigation. Following this, House Bill 837 was enacted in early 2023, introducing broader tort reforms.

“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, executive vice president and chief legal officer for the American Property Casualty Insurance Association. “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.”

The Perryman Group, a non-partisan research firm established 40 years ago, determined its insurance cost savings estimates through computer modeling that compared recent insurance rate data with the trajectory of rates prior to the reforms.

The rate figures align with the latest quarterly data from the Florida Office of Insurance Regulation (OIR). Reports indicate that the average premium for personal residential policies among the largest 16 property insurers in the state increased by less than 1% in 2025. This marks a significant improvement compared to the double-digit increases homeowners experienced in previous years before the litigation legislation was enacted.

For 10 carriers, average residential premiums even fell last year, with some decreasing by as much as 11%, according to OIR data. Although average premiums had been rising significantly for at least two years following the reform legislation, the numbers appear to have turned a corner in 2025.

The Perryman report emphasizes that the reform legislation will continue to influence Florida’s economy positively. “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,” noted APCIA’s Zielezienski.

The full report can be accessed here.

Topics
Florida

Florida’s landmark legislative changes in 2022 and 2023 have significantly impacted the state’s economy. These reforms have led to lowered insurance costs, freeing up funds for other investments and attracting new companies to the state, according to a report by the Perryman Group, an economic analysis firm.

Based in Waco, Texas, and led by renowned economist Ray Perryman, the firm calculated that property-casualty insurance costs in Florida are now approximately 14.5% lower than they would have been without the historic reforms. This reduction has resulted in an estimated increase in business activity of around $4.2 billion and the creation of over 29,000 jobs, as concluded in the report.

The country’s largest property insurance advocacy group stated that the report quantifies the anticipated outcomes following the passage of Senate Bill 2A in late 2022. This law ended assignments of benefits and one-way attorney fees, effectively curbing excessive claims litigation. Following this, House Bill 837 was enacted in early 2023, introducing broader tort reforms.

“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, executive vice president and chief legal officer for the American Property Casualty Insurance Association. “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.”

The Perryman Group, a non-partisan research firm established 40 years ago, determined its insurance cost savings estimates through computer modeling that compared recent insurance rate data with the trajectory of rates prior to the reforms.

The rate figures align with the latest quarterly data from the Florida Office of Insurance Regulation (OIR). Reports indicate that the average premium for personal residential policies among the largest 16 property insurers in the state increased by less than 1% in 2025. This marks a significant improvement compared to the double-digit increases homeowners experienced in previous years before the litigation legislation was enacted.

For 10 carriers, average residential premiums even fell last year, with some decreasing by as much as 11%, according to OIR data. Although average premiums had been rising significantly for at least two years following the reform legislation, the numbers appear to have turned a corner in 2025.

The Perryman report emphasizes that the reform legislation will continue to influence Florida’s economy positively. “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,” noted APCIA’s Zielezienski.

The full report can be accessed here.

Topics
Florida