Florida Insurance Reforms: Cost Reductions and Economic Growth Insights

Florida's legislative changes in 2022 and 2023 have reshaped the insurance industry by significantly reducing costs, according to The Perryman Group's report. These reforms, targeting property-casualty insurance, have cut insurance expenses by 14.5% compared to potential rates without these measures. The reduction has spurred $4.2 billion in business activity and created over 29,000 jobs.

The American Property Casualty Insurance Association (APCIA) noted the legislative impact through Senate Bill 2A and House Bill 837. Senate Bill 2A aimed to eliminate assignments of benefits and one-way attorney fees to curb litigation, while House Bill 837 introduced broader tort reforms. Stef Zielezienski, Executive Vice President and Chief Legal Officer of APCIA, stated, "These reforms are driving down insurance costs for consumers and businesses, encouraging insurers to return to the market, and generating billions in economic activity."

The Perryman Group used non-partisan modeling to assess cost savings, supported by data from the Florida Office of Insurance Regulation. Despite a minor sub-1% increase in average premiums for residential policies in 2025, this contrasts with previous years’ double-digit hikes before the legislation. Among ten insurance carriers, average residential premiums decreased last year, some by up to 11%, marking stabilization post-reform.

The legislative impact is set to further benefit Florida’s economy by fostering a stable insurance market and encouraging long-term growth. APCIA anticipates compounded reforms will enhance the state's legal climate, and interested parties can review The Perryman Group's full report for more insights.