The Wall Street Journal (WSJ) announced in a report that Florida's 2023 tort reforms, including House Bill 837, are contributing to the stabilization of the state's insurance markets and a reduction in workers' compensation and auto premiums.
According to the WSJ, these reforms under Governor Ron DeSantis have begun to produce tangible consumer benefits. The state's top five auto insurers have reduced rates by approximately 6.5% on average. Companies like Progressive are planning nearly $1 billion in rebates or credits for Florida auto policyholders, linked to lower litigation costs. State Farm has also announced significant rate reductions, with homeowners experiencing relief as numerous companies file for lower or flat premiums while new insurers enter the market. Supporters argue that these developments demonstrate the reforms' effectiveness in stabilizing the insurance market and returning money to consumers.
Bill Herrle, executive director of the National Federation of Independent Business in Florida, said that since the reform's passage, insurance rates have started to stabilize and workers' compensation costs are decreasing in 2026. He noted that reduced litigation risk has lifted a "dark cloud" for small businesses, which he sees as evidence of early market benefits from the reforms.
A paper by Milliman explains that measures enacted in Florida aim to reduce claim frequency and severity by limiting frivolous litigation and attorney incentives. This shift has already resulted in lowered litigation and improved claims handling. Milliman suggests these changes can lead to lower loss costs, enabling insurers to reflect these savings in pricing.
Insurance Business reports that after years of volatile pricing, Progressive plans to return up to $950 million to Florida auto customers through credits or rebates tied to quiet hurricane seasons and improving underwriting results. This move reflects excess permitted profits under Florida law, indicating a rebound in insurer profitability and benefiting policyholders with lower overall costs.
State Farm and others publicly credit decreased litigation costs—a central goal of the 2023 tort reforms—as a key factor enabling rate reductions and customer rebates. These developments support conclusions that reforms limiting lawsuit abuse and legal costs are beginning to translate into real premium relief for Florida policyholders.
The Wall Street Journal is a U.S.-based daily newspaper founded in 1889 by Charles Dow, Edward Jones, and Charles Bergstresser. It is widely regarded as one of the most influential business and financial publications globally.
