August 14, 2025
As litigation costs continue to rise and nuclear verdicts grow more frequent, several states are taking bold legislative steps to restore balance to the legal system. These efforts are part of a broader push to fight back against social inflation, which is when shifting public attitudes and legal trends drive up liability claim costs.
Sedgwick’s 2025 liability litigation commentary paper highlights a wave of tort reform efforts that are already reshaping the risk landscape for insurers, businesses and claims professionals. These reforms aren’t just theoretical — they’re producing measurable results.
In Florida, Georgia and beyond, states are showing that targeted legal changes can reduce the impacts of social inflation by reducing litigation volume, lowering insurance premiums and curbing the frequency of outsized jury awards.
Florida’s reform success story
Florida’s 2023 Tort Reform Act (HB 837) is a prime example of how comprehensive reform can make a difference. Now, two years into implementation, the state is seeing tangible benefits:
- Major insurers have filed for motor rate reductions between 6% and 10.5%.
- Litigation volume has dropped by nearly 30% from peak levels.
- Questionable motor glass claims fell by 46% between 2023 and 2024.
- Florida dropped from No. 2 to No. 10 in national rankings for nuclear verdicts.
These outcomes are not coincidental. HB 837 addressed several key drivers of social inflation, including inflated medical billing, one-way attorney fees and excessive post-judgment interest rates. By rebalancing the legal playing field, Florida has become a model for other states.
Georgia’s landmark legislation
In 2025, Georgia followed suit with two major bills to counteract social inflation: SB 68 and SB 69. These laws introduced sweeping changes to how liability cases are litigated in the state. Key provisions include:
- Prohibiting “anchoring” by limiting references to specific damage amounts
- Capping medical damages to the reasonable value of necessary care
- Allowing bifurcation of liability and damages in most cases
- Adding a seat belt defense in motor cases
- Reforming premises liability to require fault apportionment among all responsible parties
Georgia also tackled third-party litigation funding with SB 69. This legislation mandates disclosure of funding agreements and prohibits financiers from influencing legal strategy. These changes are expected to reduce frivolous lawsuits and improve transparency in the courtroom.
Other states join the movement
Several other states passed meaningful reforms to push back on social inflation in 2025:
- Louisiana raised its “no pay, no play” threshold and shifted to a modified comparative fault system.
- South Carolina passed liquor liability reforms to help struggling hospitality businesses.
- Oklahoma capped non-economic damages and introduced litigation funding transparency requirements.
While not all reforms are equally comprehensive, the momentum is clear. States are recognizing that unchecked litigation costs can drive up insurance premiums, discourage business investment and erode public trust in the legal system.
Why this matters for insurers and businesses
Tort reform isn’t just a legal issue — it’s a business imperative in the fight against social inflation. When litigation becomes more predictable and less prone to abuse, insurers can price risk more accurately, and businesses can operate with greater confidence.
However, reform is not guaranteed. In Florida, several bills were introduced in 2025 to roll back key provisions of HB 837. Although these efforts were ultimately withdrawn, they highlight the need for continued vigilance and advocacy.
The path forward
To manage the impact of social inflation, organisations should stay up to date with tort reform developments in the states where they operate. They should also consider engaging with local business coalitions or industry groups to support balanced legal policies that protect both claimants and defendants.
Want to explore the full impact of these reforms and what they mean for your organisation? Download our 2025 liability litigation commentary paper for a state-by-state breakdown and expert analysis.
