Florida lawmakers grilled current and former insurance commissioners for three hours on Friday, demanding answers about a report detailing money transfers from Florida insurers to out-of-state affiliates. The report, commissioned by the Florida Office of Insurance Regulation in 2020 and published in March 2022, revealed that insurers were paying billions to affiliated companies while pleading for legislative reforms due to storm liabilities and excessive litigation.
Lawmakers questioned why the report was not made public earlier, with former commissioner David Altmaier citing concerns about incomplete information. The report showed that insurers reported $61 million in net income while their affiliates reported $14 billion, raising red flags for lawmakers.
Both Altmaier and his successor, Michael Yaworsky, faced scrutiny for not following up on the report’s findings. Yaworsky defended the delay, citing overwhelming responsibilities in dealing with insolvencies and investigations.
Lawmakers also raised concerns about the impact of excessive affiliate fees on policyholders’ premiums, with a lack of clarity on what constitutes fair and reasonable payments to affiliated groups. The delay in sharing the report with lawmakers and the public drew criticism, with calls for an updated report and further investigation.
Despite Governor Ron DeSantis’ claim of stability in the homeowners’ insurance market, concerns persist about rising rates for policyholders, particularly with the state-backed Citizens Property Insurance Corp. implementing higher rates for almost 1 million policyholders. The future of insurance regulation in Florida remains uncertain, with lawmakers pushing for transparency and accountability in the industry.
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