A recent economic analysis from The Perryman Group indicates that Florida’s tort reforms have resulted in notable benefits for the state’s economy, insurance market, and consumers. The report, titled “The Economic Benefits of Effects of Tort Reform on Property and Casualty Insurance Rates in the State of Florida,” details how legislative changes such as SB 2-A and HB 837 have contributed to lowering litigation costs and stabilizing insurance rates.
According to the analysis, these reforms have led to an average 14.5% reduction in property and casualty insurance costs compared to what would have happened without them. The lower costs and improved market stability have encouraged more companies to enter or return to Florida’s insurance market, increasing competition and consumer options.
The cost savings generated by these reforms support over $4.2 billion in annual gross product and about 29,370 jobs across the state. Additionally, the measures produce $206.6 million in new state tax revenue and $155.3 million for local governments each year.
By reducing excessive litigation, the reforms help decrease unpredictability in the legal system, which leads to lower premiums and increased efficiency across various 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 American Property Casualty Insurance Association (APCIA), a leading advocacy organization for home, auto, and business insurers with a history spanning 150 years according to its official website, has highlighted this report as evidence of positive outcomes resulting from policy changes. David A. Sampson serves as chief executive officer of APCIA as noted by their official website. The association supports industry advancement through advocacy at state, federal, and international levels and provides compliance resources along with policy support.
