Florida Tort Reforms Boosting P&C Insurance Market
The American Property Casualty Insurance Association (APCIA) is prioritizing legislative developments in Florida and at the federal level that may impact the property and casualty (P&C) insurance market. APCIA supports Florida's tort reforms and is advocating for various auto-related bills in Congress to address AI-driven prior authorization delays and regulatory compliance requirements.
Florida Tort Reforms and Insurance Cost Reductions
A study by The Perryman Group, commissioned by APCIA, assessed the economic impacts of recent tort reforms in Florida on the P&C insurance industry. This research focused on legislative measures such as SB 2-A and HB 837, which reportedly decreased litigation costs and stabilized the state's insurance market.
The analysis from The Perryman Group suggested these reforms might lead to a substantial 14.5% reduction in P&C insurance costs compared to scenarios lacking the reforms. Additionally, these adjustments could enhance Florida’s economy by generating over $4.2 billion annually in gross state product and supporting approximately 29,370 jobs.
Moreover, the report estimates an increase in tax revenue by about $206.6 million annually for the state and $155.3 million for local governments. APCIA highlights these outcomes as incentives for insurers to enter or re-enter the Florida market, thereby increasing competition and consumer choices.
Stef Zielezienski, APCIA’s Executive Vice President and Chief Legal Officer, stated that the tort reforms are bringing balance to Florida's legal landscape while reducing costs and bolstering economic stability. "Florida’s tort reforms are achieving exactly what policymakers intended – bringing balance to the civil justice system," he said.
While supporters view the reforms as beneficial, some critics express concerns regarding limited legal recourse and the slow pace of premium reductions for households. They also point to potential variations in insurers' underwriting and pricing adjustments over the long term.
Support for Federal Auto-related Legislation
On the federal front, APCIA is advocating for legislative efforts aimed at enhancing auto-related regulatory frameworks. The organization supports bills from the House Energy & Commerce Subcommittee on Commerce, Manufacturing, and Trade. These include the PART Act (H.R. 5221), the REPAIR Act (H.R. 1566), the ADAS Functionality and Integrity Act (H.R. 6688), the Driver Technology and Pedestrian Safety Act (H.R. 3360), and the Motor Vehicle Modernization Act of 2026 (H.R. 7389).
Sam Whitfield, APCIA's Senior Vice President of Federal Government Relations, stressed these bills' roles in reducing theft and claims costs, improving auto safety, fostering competition in the repair market, and ensuring regulatory developments keep pace with technological advancements in vehicles.
This dual focus by APCIA highlights the association's commitment to fostering a balanced and competitive insurance market through legislative advocacy and industry insights. Their efforts support both industry-specific adjustments and broader regulatory compliance frameworks, promoting a competitive environment that benefits both consumers and insurers.