Florida Lawmakers Investigate Insurance Market Transparency

Florida lawmakers are investigating the high insurance rates in the state amid concerns that property-insurance companies are sending money to affiliated firms while reporting losses. During a hearing by the House Insurance & Banking Subcommittee, lawmakers questioned state Insurance Commissioner Michael Yaworsky and former Commissioner David Altmaier about a 2022 report that highlighted financial flows between insurers and affiliated companies. This report, delayed in its release to lawmakers, has raised serious questions about the integrity of the property insurance market in Florida and whether companies are exploiting loopholes to protect their profits at the expense of consumers.

Rep. Mike Caruso emphasized the need for transparency and accountability, stating that the outdated nature of the report is unacceptable, given its reliance on data from 2017 to 2019. Yaworsky acknowledged the importance of revisiting the report and ensuring that future regulation addresses any perverse incentives created by managing general agents (MGAs) affiliated with insurance firms. As concerns mount, the state’s insurance market continues to struggle, with companies raising rates and some going insolvent.

The timing of the hearing mirrors broader scrutiny over legislation passed in 2022, which aimed to assist insurers amid claims of financial distress. Lawmakers are now questioning whether the prior arguments made by the insurance industry for these changes were valid, as new evidence suggests a possible misrepresentation of their financial health. As investigations proceed, the state’s insurance landscape remains in the spotlight, with officials vowing to get to the bottom of the situation and protect Florida consumers.