Last month, the Perryman Group released a report assessing the economic impacts of Florida’s recent tort reforms. The group found the reforms ushered in lower insurance costs, encouraged insurer entry into the market, and generated broader economic activity and tax revenue for state and local governments.
The report examines legislative changes including SB 2-A and HB 837. It notes that HB 837 revised Florida’s comparative negligence standard, shortened the statute of limitations for general negligence claims from four years to two, and changed rules governing damages and attorney fees.
The analysis links these reforms to shifts in the state’s insurance market, including increased insurer participation and lower costs for consumers.
It also points to a decline in litigation activity, citing a drop in auto glass repair lawsuits between plaintiffs and insurers from 24,720 in the second quarter of 2023 to 2,613 in the same period in 2024. Major insurers including GEICO, Progressive, and State Farm also filed for rate reductions of 10.5%, 8.1%, and 6%, respectively, according to Milliman.
Broader trends cited in the report include a decline in Florida’s share of nationwide homeowners’ insurance lawsuits, which fell from 79.9% in 2018 to 71.5% in 2023, along with additional decreases in lawsuits filed against insurers during the first three quarters of 2024 compared with the same period in 2023, according to the R Street Institute.
The Perryman Group is an economic research and analysis firm based in Waco, Texas, led by Dr. M. Ray Perryman. It provides economic modeling, forecasting, and policy analysis services for public and private sector clients.
