Florida lawmakers are stepping up to tackle concerns about the property insurance market. This week, legislative leaders announced plans to investigate the financial practices of property insurers, particularly their dealings with managing general agents (MGAs) and affiliated companies. This decision comes after reports suggested that insurers may have shifted billions to these affiliates while claiming financial struggles due to hurricanes and litigation.
House Speaker Danny Perez from Miami is leading the charge, calling for hearings to explore these relationships. The investigation was prompted by a lengthy analysis from the Florida Office of Insurance Regulation that highlighted these financial maneuvers. Despite the attention on this issue, it remains uncertain whether the investigation will result in new regulations or reporting requirements for insurers and MGAs.
Insurance agents and industry advocates have expressed skepticism about the claims made in the reports. They argue that the MGA arrangements are already regulated and that it would be illogical for insurance companies to allow themselves to become insolvent while siphoning off profits. Some industry representatives noted that many affiliated companies have actually contributed substantial amounts to keep insurers afloat.
As lawmakers gather in Tallahassee, the rising costs of insurance remain a top concern for homeowners. The Florida Association of Insurance Agents has emphasized the need for caution regarding any changes to recent reforms aimed at reducing litigation costs and attorney fees.
Several bills are currently under consideration. One notable proposal, House Bill 643, would simplify the process for agents to help clients secure surplus lines coverage. Another, Senate Bill 230, seeks to reduce the pre-licensing education requirements for agents, which has drawn criticism for potentially lowering industry standards.
Additional measures include extending a pilot program for condominium safety improvements and establishing a trust fund for home mitigation efforts. Some bills aim to clarify cancellation notice periods and prevent insurers from canceling policies shortly after repairs.
However, some proposals have sparked controversy. For instance, a bill that would allow Citizens Property Insurance to increase rates without restrictions has raised eyebrows among consumer advocates. Critics warn that such changes could undermine protections for homeowners.
As the legislative session progresses, lawmakers will have a limited window to address these issues, with many bills competing for attention. The outcome of these discussions could significantly impact Florida’s insurance landscape in the coming years.