TALLAHASSEE, Fla. — Lawmakers scrutinized Florida’s current and former insurance commissioners on Friday morning, diving into a state report that has sparked serious controversy.
First reported by the Tampa Bay Times, the recently released report suggests that property insurance companies funneled billions of dollars to affiliated firms while claiming financial struggles.
Florida's current Insurance Commissioner, Michael Yaworsky, and his predecessor, David Altmaier, faced intense questioning during the three-hour hearing of the House Insurance and Banking Subcommittee.
Rep. Mike Caruso (R-West Palm Beach) put the issue bluntly.
"I know the number one thing out there to the people of Florida is that they want answers,” Caruso said.
A significant portion of the hearing focused on the state insurance report from March 2022. Until recently, it had been kept confidential to protect “trade secrets.” The report revealed that from 2017 to 2019, insurers transferred approximately $14 billion to affiliated companies under state-approved agreements.
The practice, said the commissioners, is common in modern business operations. For insurers— in a regulated industry— it can boost profit margins for their parent companies. That’s as Florida homeowners during those years faced skyrocketing insurance rates and demanded relief from the ongoing crisis.
In December of 2022, the Florida Legislature, unaware of the report’s findings, acted. They approved major insurance reform aimed at curbing insurer lawsuits. While critics have labeled it a bailout for the industry, Rep. Tom Leek (R-Daytona Beach) described the legislation as "the biggest, meatiest, beefiest property insurance legislation that this state has ever seen."
State officials have since said the changes helped stabilize the market, easing rates, attracting new insurers, and reducing litigation by about 30% or more.
Even so, some question whether more could have been done. As lawmakers toiled on tort reform and homeowners suffered, the confidential study remained out of sight.
Yaworsky, the current Insurance Commissioner, defended the lack of transparency. He called the report “a very incomplete picture on the income side of what is taking place."
Both Yaworsky and Altmaier explained that the report was an early draft, unfinished, and misleading. They said that was the predominant reason why regulators didn’t share it with lawmakers sooner.
"I think what we said was, there's a lot of smoke here, and we need to make sure we go and see if there's a fire burning or not,” said Altmaier. “And that was the effort I thought was underway when I left the office."
Altmaier left the Office of Insurance Regulation in late 2022 to become a lobbyist. The study was never finalized, and committee members pushed to find out why.
"They were understaffed,” said Yaworsky. “They were dealing with probably, I think, six to seven insolvencies during that period, multiple companies under supervision. I think it just got wound up in a very overwhelming time."
Altmaier, however, took responsibility for the stagnation. He was in charge when it started and said he didn’t remember pushing for its completion prior to his departure.
"Honestly, I'll wear that one on the chin,” he told the committee. “I think I directed the staff to do the work. And I think, as I mentioned a moment ago, we moved on. I moved on to focusing on other things, and should have probably checked with my staff to make sure things were going."
Some lawmakers were not satisfied with the excuses. Rep. Hillary Cassel (R-Hollywood) challenged the commissioners for more context.
"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?" she asked.
Rep. Caruso pressed further, asking Altmaier at one point “are you claiming personal responsibility for some of the insurance issues we're having today?”
"No, sir,” said the former state official.
Both commissioners offered suggestions for future reforms. They included having the legislature better limit the cash transfers between insurers and their affiliates. Currently, state rules only require the dealings be “fair and reasonable” without clearly defining what that means. A definition, the commissioners said, could help prevent future situations—noting they've been advocating a definition for years.
The committee chair, Rep. Brad Yeager (R-New Port Richey), made it clear the investigation was far from over. He vowed to continue questioning “all relevant stakeholders,” potentially including insurers.
“I think it’s unknown where it is going, right?” said Yeager. “I think there is more to do. I think that’s what came out of today too, a lot of unknowns.”
Meanwhile, Democrats were not satisfied with just answers. They have called for more immediate action. Rep. Kevin Chambliss (D-Homestead) stressed the need for transparency and accountability.
"We’re trying to get to the bottom of this, number one,” said Chambliss. “Number two—we do want an actual completed report. In fact, I’m going to say we want to continuously have reports like this so we can make the best decisions for the people of Florida."
The timeline for future committee action remains unclear. Chair Yeager noted the group would convene as necessary, though no fixed schedule has been set.
"I'm not a drag on the system."
A woman said she hasn't been able to shower or get out of bed ever since a car accident left her paralyzed from the chest down, and Medicaid denied claims for the medical gear she needs
