Florida lawmakers swing into action after Trump smacks DeSantis on insurance

The Florida Senate has passed legislation aimed at cracking down on insurance companies that have been accused of not fully paying out claims after hurricanes battered the state over the past few years. The legislation, SB 76, would give the state Office of Insurance Regulation broader powers to investigate companies and perform financial exams. It would also require companies to turn over internal documents to regulators, including claims manuals and other guidance given to claims adjusters. If passed by the Florida House, the new regulations would take effect in July.
While the legislation is being hailed as a victory for homeowners who have been left out in the cold following claims disputes, industry insiders are concerned the bill could do more harm than good. Critics say that requiring companies to turn over information to regulators will make it easier for trial lawyers to go after insurers, driving up costs for all policyholders. The bill could also have unintended consequences, such as causing insurers to halt the writing of new policies during hurricane season, as they try to avoid exposure to increased litigation.
Florida’s insurance industry has been in flux for the better part of a decade, as hurricanes and tropical storms have driven up costs and driven some companies out of business. The state’s property insurance market is now heavily reliant on Citizens Property Insurance Corp., a state-run entity which is the insurer of last resort for Floridians who cannot find coverage through traditional carriers. Despite legislative efforts in recent years to reduce Citizens’ size by encouraging the private market to take more policies, the company’s policyholder count now stands at 551,000.
Florida lawmakers are trying to strike a balance between protecting homeowners, who have seen their insurance premiums skyrocket in recent years, and ensuring the insurance industry remains viable in the state. This legislation is part of a broader effort to fix the insurance market so that homeowners can obtain adequate coverage at a reasonable price. Success or failure could have major implications for homeowners, insurers, and other stakeholders across the state.



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