Recent legislative changes to Florida’s civil justice system are producing measurable financial gains for residents, according to a new report released in February 2026.
The analysis, conducted by The Perryman Group for the American Property Casualty Insurance Association, finds that tort reforms enacted over the last few years have triggered a 14.5% average reduction in property and casualty insurance costs across the state.
These savings are translating into a significant boost for the state’s broader economy. The report estimates that the reduction in insurance premiums has freed up capital for consumers and businesses, leading to an increase in Florida’s annual gross product of more than $4.2 billion.
This economic activity is credited with supporting approximately 29,370 jobs when accounting for multiplier effects across various industries.
The study points to several key pieces of legislation as the primary drivers of these shifts, specifically Senate Bill 2-A and House Bill 837. These laws introduced structural changes to the legal landscape, including the elimination of one-way attorney fees, a transition to a modified comparative negligence system, and a shortened statute of limitations for general negligence claims from four years to two.
READ: Florida Mom Kills Her Two Children Before Taking Own Life
“Recent Florida reforms have reduced insurance costs and encouraged additional firms to enter the market,” the report states. “As a result, homeowners and others are realizing significant savings which are, in turn, generating jobs and economic activity across the state.”
The impact is also being felt in the state’s fiscal health. According to the data, the increased business activity generates roughly $206.6 million in annual tax revenue for the State of Florida and $155.3 million for local taxing entities.
Market competition appears to be responding to the new environment as well. The report notes that several insurance companies have entered or reentered the Florida market since the reforms took effect. This shift has accompanied a sharp decline in litigation; frivolous lawsuits against property insurers reportedly dropped by 25% in the first half of 2025 compared to the previous year.
The findings highlight that by moving away from a “pure” comparative negligence standard—where a plaintiff could recover damages even if they were 99% at fault—to a system where those more than 50% at fault cannot recover damages, the state has balanced its judicial system.
While the current benefits are measured at $4.2 billion, the analysis suggests these gains are expected to compound over time as the business climate continues to stabilize and more private-market options become available to homeowners.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox
