The Florida insurance faces major changes

The legislators in Florida have proposed a number of invoices to solve the state's paralyzing insurance crisis.

While the legislator of the states convened for the legislative period in 2025, the insurance industry in Florida is faced with potential, comprehensive changes that aim to fix increasing homeowners, insolvency insurers and lack of transparency.

Why is it important

For some years now, Florida has been ahead of frequent hurricanes, increasing legal disputes and insurers who leave the market.

Citizens Property Insurance Corp, originally founded as an insurer of the last sort, currently has 847,571 guidelines in force from February 28 and remains financially tense. Despite the efforts to stabilize interest rates, the average increase in the premiums of the citizens this year is 8.6 percent if it combines primary and non-primary residence accounts.

What to know?

A central proposal is Senate Bill 1740, which is introduced by the Republican Senator Blaise Ingoglia. It would require insurers to maintain additional reserves of 35 million US dollars, beyond the amount that is required to cover the obligations of the policyholder.

In the legislation, managers and lawyers from failed insurance companies are also determined if they are able to take on leadership roles in another insurer in the five years before bankruptcy.

Senator Ingoglia said last week in a statement: “Managers of insurance companies who previously made their companies bankrupt Tampa Bay Times.

Ingoglia has also proposed a change in the constitution of Florida, SJR 1190, which would make it possible for the property to be frozen for homeowners that take certain resilience measures. The legislation would require the legislator's approval to adopt the voters. Another legislation, SB 1192, would guarantee that these advantages will remain for 20 years.

In the meantime, the Senate Bill 1466, submitted by the Senator of the Republican State Nick Diceglie, would help finance the My Safe Florida Home program, which offers grants of up to 10,000 US dollars to support homeowners for upgrading their houses. The program has quickly turned out the money in recent years.

Diceglie's proposal would indicate that five percent of sales taxes will be rejected in the two months after a storm for the payment of the program in the counties hurricane. In the meantime, in a certain month under Diceglie's other proposal, SB 1468, would be tax -exempt in a certain month.

Transparency within the industry is the focus of the Law on the Senate 1656, which was proposed by Senator Jay Collins, the Republican State, and House Bill 1429, that insurers submit a “transparency report” if inquiries submitted to the supervisory authorities.

Within the reports, insurers would have to reduce a number of costs, including; Profits, legal dispute fees, partner payments, claims and reinsurance.

In the meantime, SB 554, proposed by the Senator of the Republican State of Don Gaetz, would request the supervisory authorities to report the financial compensation of the insurance managers and the profits or losses of their companies. This would also describe the financial relationship between insurers and affiliated companies with at least 10 percent common owners.

Gaetz is also trying to restore Florida's disposable lawyer fee, which made it possible for the policyholder to recover legal costs for successful insurance companies before 2023.

Newsweek Has contacted the senators Ingoglia, Diceglie, Collins and Gaetz as a comment.

What people say

Sen. Ingoglia wrote in February on X, formerly Twitter, in February: “My proposal: Let us incentive to freeze the resilience by freezing the current basic taxes for 20 years for those who collect and harden their houses for 20 years.

Governor Ron Desantis In a statement in February said: “In the past four years, inflation caused by the bids administration, the active hurricane seasons and the uncontrolled legal disputes in Florida for an environment for an environment that caused turbulence in the insurance markets. Florida had the margins in Florida and the authors who are on average.

What happens next

The next two months will be critical if the legislators refine and discuss the insurance proposals.

If the constitutional change of property tax freezes, it will rise in front of the voters in 2026.