Impact of Florida's Legislative Changes on Property Insurance Costs

Recent legislative changes in Florida have had a profound impact on the property and casualty insurance industry, with reforms leading to reduced insurance costs and spurring economic growth. A February analysis by The Perryman Group reveals these tort reform measures have resulted in a 14.5% decrease in insurance costs compared to anticipated rates, attributing $4.2 billion in additional gross product annually and supporting roughly 29,370 jobs statewide.

The legislative changes encompassed adjustments to negligence standards, reduced statutes of limitations, and revisions to attorney fee structures. These measures, including the elimination of unilateral attorney fee provisions and restrictions on the assignment of insurance benefits to third parties, aim to stabilize the property insurance market, significantly cutting litigation costs and promoting regulatory compliance requirements.

The Perryman Group's insights underscore how these reforms have enhanced market competition, drawing more insurers and encouraging shifts to private carriers. There has been a notable 25% decrease in lawsuits against property insurers in the first half of 2025 compared to the same period the previous year. This shift not only supports risk management but also paves the way for a favorable business climate, ultimately boosting Florida's attractiveness for economic development.