Tort Reform Drives Billions in Economic Gains
A new report finds property insurance costs would be 14.5% higher without recent reform, stabilizing a major expense in Florida home purchases.
TALLAHASSEE, Fla. — Legislative tort reforms passed in 2022 and 2023 prevented Florida property and casualty insurance premiums from rising an average of 14.5% and spurred economic growth across the state, according to a new Perryman Group analysis.
The February 2026 report, The Economic Benefits of Tort Reform on Property and Casualty Insurance Rates in the State of Florida, found the avoiding those higher costs preserved an estimated $4.2 billion in additional business activity and more than 29,000 jobs. The gains follow sweeping changes to Florida’s civil lawsuit rules, including revisions to how fault is assigned, shortened filing deadlines and changes to attorney fee standards.
Insurance costs have become a critical line item in Florida home purchases. Avoiding additional premium increases helps stabilize carrying costs and provides greater predictability for buyers and sellers. The reforms have been, and continue to be, a longstanding legislative priority for Florida Realtors®.
The report found that Florida Senate Bill 2-A, which became law in 2022, and House Bill 837, effective in 2023, also resulted in insurance companies reentering the market and hundreds of thousands of insurance policies returning to the private market.
“Additionally, frivolous lawsuits against property insurance companies dropped 25% in the first half of 2025 as compared to the same period in 2024, and the number of filings to initiate litigation was approximately 4,000 in November 2024, down from 8,000 per month in early 2023,” the report stated.
The report also highlights tax revenue benefits tied to increased economic output, estimating roughly $206.6 million in added state receipts and $155.3 million for local taxing authorities.
Read the full report here.
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