The Insurance Information Institute has announced that Florida's litigation reforms have led to nearly $1 billion in premium refunds for Progressive auto-insurance policyholders. This announcement was made on the social media platform X.
According to the Institute’s blog post, Florida's tort-reform legislation, passed in 2022 and 2023, was specifically designed to address excessive litigation costs that had long affected the state's auto-insurance market. The blog quoted Governor Ron DeSantis, who described Florida as once "a litigation hellhole" and said that lawsuit abuse inflated costs for drivers. The post further noted that regulators are now actively negotiating with other major auto insurers to secure similar refunds for policyholders, suggesting that the reform impact may extend beyond just one company.
As reported by the Institute, Progressive will issue nearly $1 billion in refunds to Florida personal auto-policy customers. This move is directly tied to cost savings achieved through litigation-reduction and tort-reform measures. The blog cites the company’s September filing showing a $950 million policyholder-credit expense for the three-calendar-year period ending December 31, 2025, reflecting improved financial performance. Additionally, Friedlander said that by eliminating "abusive lawsuits," insurers can reduce expenses and pass the savings on to consumers.
According to the blog and corroborated by regulatory filings, Florida's top five auto-insurer groups (covering about 78% of the market) are indicating an average rate change of –6.5% for 2025. This compares with +4.3% in 2024 and +31.7% in 2023—showing a significant shift in cost trends. These improved rate levels were cited by the Institute as evidence that the litigation-cost burden has eased, enabling companies like Progressive to meet statutory thresholds for refunds under Florida's "excess profits" law (Section 627.066, Florida Statutes). The blog emphasized that this shift may prompt additional refund obligations for other carriers, signaling broader consumer benefit.
According to its official website, the Insurance Information Institute (Triple-I) is a U.S.-based nonprofit organization dedicated to providing objective, data-driven research and communications on insurance economics, risk management, and public policy. The Institute serves consumers, media, regulators, and industry stakeholders by translating complex insurance issues into clear insights. As an affiliate of The Institutes, Triple-I monitors legal, regulatory, and market developments—including tort and insurance reforms like those in Florida—making it a trusted voice in the insurance sector.