Florida Lawmakers Demand Answers Over $14 Billion in Hidden Insurance Transfers
TALLAHASSEE, FL — Florida lawmakers grilled current and former state insurance commissioners in a tense hearing Friday morning, demanding accountability over a previously confidential report that revealed billions of dollars quietly moved between insurance companies and their affiliated firms — all while homeowners across the state faced soaring property insurance rates and increasing financial pressure.
The report, first made public by the Tampa Bay Times, details that from 2017 to 2019, Florida-based property insurers transferred approximately $14 billion to related businesses under regulatory agreements approved by the state. The transfers occurred during a period when insurers were warning of financial distress, prompting lawmakers to pass sweeping reforms — unaware of the internal financial movements now under scrutiny.
🔎 A Secret Report, Hidden from Lawmakers
The confidential report was drafted in March 2022 but kept from legislators under the guise of protecting “trade secrets.” That explanation didn’t sit well with members of the Florida House Insurance and Banking Subcommittee, who pressed Insurance Commissioner Michael Yaworsky and his predecessor David Altmaier for answers.
“How does the office justify receiving this report that seemed to indicate $14 billion went to affiliates, and they just dropped the ball because they were too busy?” asked Rep. Hillary Cassel (R-Hollywood), expressing frustration with the apparent lack of urgency and transparency.
Yaworsky argued that the report was an incomplete draft and lacked sufficient context, saying it painted a misleading picture of insurers’ finances. Altmaier, who oversaw the Office of Insurance Regulation during the report’s development, admitted the project lost momentum under his watch.
“Honestly, I’ll wear that one on the chin,” Altmaier said. “I moved on to focusing on other things and should have probably checked with my staff to make sure things were going.”
Altmaier left the OIR in late 2022 and now works as a lobbyist — a transition that drew additional scrutiny from the panel.
📈 Lawmakers Voted Blind on Major Reforms
In December 2022, unaware of the report’s findings, the Legislature passed what Rep. Tom Leek (R-Daytona Beach) called “the biggest, meatiest, beefiest property insurance legislation that this state has ever seen.” That reform package curbed lawsuits against insurers and was widely criticized by consumer advocates as a bailout for the industry.
While state officials claim the reforms have stabilized the market — bringing in new companies and reducing litigation by more than 30% — many legislators now question whether they were misled.
Rep. Mike Caruso (R-West Palm Beach) didn’t mince words: “I know the number one thing out there to the people of Florida is that they want answers.”
🧾 $14 Billion to Affiliates While Rates Rose
The report shows insurers used legal but opaque mechanisms to shift massive sums to subsidiaries or “affiliated firms” — often companies under the same corporate umbrella — while simultaneously asking the state for premium increases and citing financial instability.
Both Yaworsky and Altmaier defended the practice as standard in many industries and technically allowed under Florida law. But critics argue that the transfers appear to enrich corporate parents at the expense of consumers and transparency.
“These kinds of transfers might be legal, but they’re not ethical when Florida families are paying thousands more just to keep their homes insured,” said Rep. Kevin Chambliss (D-Homestead).
⚖️ Lawmakers Push for Oversight, Transparency
The hearing ended without formal action, but both commissioners urged lawmakers to consider defining what “fair and reasonable” means in the context of affiliate transactions — the vague language currently governing how much insurers can pay related companies.
“That lack of clarity creates loopholes big enough to drive a dump truck through,” said Cassel.
Rep. Brad Yeager (R-New Port Richey), chair of the committee, pledged continued oversight and suggested that insurance companies themselves could be called to testify in future hearings.
“I think it’s unknown where this is going,” Yeager said. “But I also think that’s exactly why we need to keep asking questions.”
🧩 What’s Next?
There is no set timeline for the release of a final version of the original 2022 report, nor is there a formal plan for additional hearings. But the controversy has reignited calls for stronger consumer protections and greater legislative access to internal financial data from the insurance industry.
Democrats are pushing for mandatory annual reporting on insurer-affiliate transfers and real-time transparency tools for lawmakers and regulators.
“The people of Florida deserve to know what’s going on behind closed doors,” Chambliss said. “And frankly, they deserved to know it two years ago.”
With Florida’s property insurance crisis still far from solved, the revelations have only deepened mistrust and fueled a bipartisan demand for clearer rules, tighter oversight, and a system that works for policyholders—not just corporate bottom lines.
🎤 Coverage of Lawmakers’ Hearing (with Quotes & Context)
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ABC Action News – “Lawmakers confront Florida insurance chiefs over confidential report”
https://www.abcactionnews.com/news/state/lawmakers-confront-florida-insurance-chiefs-over-confidential-insurance-report abcactionnews.com+1wusf.org+1 -
CBS Miami – “Florida lawmakers investigate claims that property insurance companies are hiding profits”
https://www.cbsnews.com/miami/news/florida-lawmakers-look-for-insurance-answers/ propertyinsurancecoveragelaw.com+15cbsnews.com+15clickorlando.com+15
🧾 Detailing the Incomplete Report & Red Flags
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Tampa Bay Times – “Lawmakers grill Florida regulators about study on insurance ‘accounting tricks’”
https://www.tampabay.com/news/florida-politics/2025/03/14/florida-insurance-profits-premiums-report-billions/ lisamillerassociates.com+3tampabay.com+3tampabay.com+3 -
Tampa Bay Times – “Florida regulators didn’t follow up on insurance profits study, author says”
https://www.tampabay.com/news/florida-politics/2025/04/03/florida-insurance-profits-regulators-legislature-hearing-study-billions/ newsweek.com+13tampabay.com+13tampabay.com+13
📊 Context on Affiliate Profits & Industry Practice
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Fox 13 Tampa Bay – “Insurance payments and the call for reform”
https://www.fox13news.com/news/insurance-payments-call-reform fox13news.com -
Insurance Journal – “Florida Report on MGAs Fell Through the Cracks, Commissioners Say”
https://www.insurancejournal.com/news/southeast/2025/03/17/815828.htm insurancejournal.com+1propertyinsurancecoveragelaw.com+1
✅ Policy Implications & Regulatory Oversight
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CBS Miami (again) – Same thorough hearing overview
https://www.cbsnews.com/miami/news/florida-lawmakers-look-for-insurance-answers/
