Florida Senate Panel Pushes for Greater Insurance Transparency

A Florida Senate committee is advocating for increased transparency in the state's insurance market, a move that could significantly benefit consumers. The Senate Banking and Insurance Committee recently approved a bill that aims to expand the information available on the Florida Office of Insurance Regulation (OIR) website.  

The current OIR website offers a rate comparison tool for homeowners and auto insurance, providing estimated premiums for certain property types and policyholders. However, the approved bill seeks to enhance this tool into a comprehensive consumer guide. This expanded guide would include detailed information about available policies and insurance companies within the state, along with "transparency reports" that reveal insurer cost factors and profit details.  

Senator Bryan Avila (R-Hialeah Gardens), who introduced the measure, believes this initiative will foster greater consumer trust by making clear and accessible information available on the OIR website. He noted that the current OIR website needs improvement in terms of descriptiveness.  

Under the proposed legislation, the enhanced website would feature rates from every insurer operating in Florida. Moreover, insurers would be required to produce rate transparency reports when filing for rate changes, starting in October. These reports, accessible to potential policyholders and on the OIR site, would detail various factors influencing insurance coverage costs – data that has historically been difficult for consumers to obtain.  

These factors include reinsurance costs, claims costs, legal defense and containment costs, fees and commissions, insurer profits, adverse findings, contact information, and other relevant data points.  

The bill also addresses the role of managing general agents. The website would be required to disclose information on whether insurers use affiliated entities for administrative, claims handling, or other functions, and if so, the percentage of direct written premium paid to these affiliated entities.  

Senator Jim Boyd (R-Bradenton), an insurance agent and agency owner, acknowledged the complexity of insurance data. He emphasized the importance of consolidating this data into a user-friendly website to aid consumers in navigating the insurance process.  

The bill specifies that average statewide rate changes, approximate rates, and county rating examples will not be considered trade secrets. The approved version of the bill will now undergo review by at least one other Senate committee.  

In addition to this bill, the committee also favored Senate Bill 794, sponsored by Senator Jennifer Bradley. This bill aims to curb the overuse of artificial intelligence in claims handling. It would mandate that a qualified human professional sign off on claims denials and require insurers to certify that AI did not form the basis for denying a claim. The OIR would also be empowered to audit claims denials to ensure compliance.  

This legislative push for greater transparency and regulation reflects an ongoing effort to stabilize Florida’s insurance market and empower consumers with the information they need to make informed decisions.