Florida Governor Nominee Proposed Property Insurance Reforms
The plan aims to curb affiliate payments after a report highlighted billions in fees paid by insurers.
Updated on Sept. 28, 2026 in Insurance
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Should states strictly limit how insurance companies move profits to their affiliated businesses?
Democratic gubernatorial nominee David Jolly unveiled a proposal to regulate how Florida insurance companies pay their corporate affiliates. The plan follows the publication of a state-funded report revealing significant discrepancies between reported insurer losses and payments made to related entities.
Why it matters
The proposal addresses concerns that insurance companies use complex structures to shift funds to affiliates, potentially obscuring profits while seeking rate increases. Homeowners face pressure from rising premiums, and these financial arrangements may impact the transparency of the current regulatory environment.
A state-funded report analyzed insurer profits from 2017 to 2019, finding that at least 20 insurers paid affiliate fees exceeding state fair and reasonable standards. During this period, companies reported $432 million in losses while simultaneously moving $1.3 billion to affiliated firms.
The players
David Jolly
The Democratic nominee for Florida governor who has proposed new regulatory oversight for insurance company affiliate payments.
Michael Yaworsky
The Florida Insurance Commissioner who characterized the state-funded report on insurer affiliate fees as an unfinalized draft.
Byron Donalds
The Republican nominee for Florida governor who is running against David Jolly in the current election cycle.
The details
Insurance companies often use complex corporate structures to pay fees to affiliates while declaring operating losses to state regulators, which can complicate efforts to cap profits or manage rate hikes. Jolly’s plan seeks to mandate public disclosure of these affiliate payments and define new fair payment thresholds through executive action. This approach aims to prevent companies from circumventing existing rate regulations while potentially lowering costs for Florida homeowners.
Timeline
The state-funded report analyzed insurer profits between 2017 and 2019.
A consultant provided the final profit report to state officials in 2022.
The Florida House passed legislation regarding affiliate scrutiny in 2026.
News organizations released the previously secret report on September 25, 2026.
David Jolly announced his regulatory reform plan on September 28, 2026.
Money Landscape
Florida remains in a volatile period for property insurance affordability as policymakers look for new ways to lower premiums. The proposal to utilize the state's hurricane catastrophe fund as a primary insurer suggests a potential shift in the state's traditional role in the market.
Homeowners currently facing rising premiums should monitor future regulatory debates regarding how insurers report their financial health to state authorities. Any change to these rules may ultimately influence the rate-setting process for residential property policies in Florida.
The takeaway
The move to scrutinize insurer affiliate relationships highlights a growing tension between reported corporate losses and the fees paid within complex insurance structures. Residents should monitor future legislative or executive developments regarding these financial disclosures when reviewing their own renewal notices.
Further reading
For broader context on property coverage trends, visit Insurance.
Live Poll
Should states strictly limit how insurance companies move profits to their affiliated businesses?
