TALLAHASSEE, Fla. — “We want the truth, and we’re going to find it,” said Rep. Brad Yeager, Wednesday. He’s the Florida lawmaker now leading a state committee tasked with uncovering whether Florida insurers were saying they were in the red while reaping massive profits.
The investigation is set against the backdrop of major tort reform passed by lawmakers in a series of regular and special sessions. Much of it was prompted by claims of a teetering insurance market following massive damage from several strong hurricanes.
Yeager, the chair of the Florida House Insurance and Banking Subcommittee, now holds significant power to subpoena, call witnesses, and summon experts. His goal is clear, he says: to get to the bottom of what’s really happening in Florida’s insurance market.
On Wednesday, the subcommittee held its first meeting.
“This is an investigation,” Yeager declared. “We’re going to dig in with no set outcomes. We’re going to dig in just to find the truth — and we will follow where the truth takes us.”
The investigation follows the recent public release of a confidential state study from 2022. First reported by the Tampa Bay Times, it suggested that major insurance companies were posting billion-dollar profits while claiming substantial losses in the wake of Hurricanes Irma and Michael. The poverty plea from the insurance industry led to sweeping tort reforms that limited lawsuits against insurers and were intended to stabilize Florida’s insurance market.
“We just want the information,” Yeager emphasized. “We want the truth, and we’re going to find it.”
As the committee chair, Yeager said he was committed to using the committee tools at his disposal to gather all the facts. The Republican intends to act fast, as well.
When asked about the investigation’s timeline, Yeager said: “We’re going to get started now. You’ll see the next couple of weeks, we’ll get this thing cranked up, get the ball rolling. I don’t want to put a timeline on it exactly, but we’re going to get started now.”
The chair said he wanted to speak with “every stakeholder involved.”
Florida House Speaker Danny Perez (R-Miami), who appointed the committee, first announced the investigation during his opening day speech, Tuesday, saying that the committee members should have the freedom to dig deep and ask tough, detailed questions.
“We’re looking at it right now from a 50,000-foot view,” Perez told reporters.
The scope of what lawmakers will uncover is still uncertain. Florida’s Chief Financial Officer Jimmy Patronis, who helps oversee the state’s insurance system, weighed in following this month’s cabinet meeting. He seemed to suggest at least some of the report was overblown.
Insurance experts weigh in on Florida Lawmakers' insurance industry investigation
When asked if there had been any wrongdoing, Patronis said: “I think probably some of it was misinterpreted. I think some of it was legal, and some of it probably wasn’t inappropriate— but in the eyes of John Q. Public— with what they’ve been going through, they probably feel it’s highly inappropriate.”
The findings from the committee’s work could lead to further policy changes. Governor Ron DeSantis (R-FL) weighed in on the matter Tuesday, supporting more transparency but firmly rejecting any moves to reverse the tort reforms already enacted.
“I am not going to support opening up the litigation floodgates,” DeSantis said. “The fact is, our markets were being driven into the ground because of excessive litigation. We had 78% of all litigation costs nationwide, with just 8% of the claims.”
Democrats have praised the investigation, with House Minority Leader Rep. Fentrice Driskell (D-Tampa) expressing optimism that it could lead to significant changes, including lower premiums for Floridians.
“I’m optimistic that by starting this process at the beginning of regular session, perhaps by the end of this session, in about 60 days, we can have some meaningful legislation that will allow reform and put Floridians first,” Driskell said.
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