Petition for Insurance Reform: End the Exploitation, Shell Games, and Lack of Consequences That Don’t Encourage Insurance Companies to Lower Prices

To: Florida State Legislature

 Demand for Transparency and Accountability in Florida’s Homeowner Insurance Industry

We, the undersigned, call upon the Florida State Legislature to investigate and implement reforms addressing the alarming pattern of financial mismanagement, unfair practices, monopolization, and lack of transparency within Florida’s homeowner insurance industry, perpetuated by insurance company CEOs.

Florida homeowners are facing a crisis as insurance companies go insolvent, leaving policyholders with unpaid claims and forcing the state-backed Florida Insurance Guaranty Association (FIGA) and Citizens Insurance to take over the burden. Meanwhile, the very CEOs responsible for these insolvencies continue to exploit the system by playing a dangerous shell game:

1. Insolvency Without Accountability: Insurance company CEOs are permitted to run companies into the ground, declare insolvency, and then open or transfer business to another insurance company they already own, without facing consequences. This lack of accountability leaves homeowners vulnerable to financial disaster after a named storm or influx of claims.
2. Affiliated Companies and Profit Shifting: Many of these CEOs also own affiliated companies—such as restoration, repair, or reinsurance firms—where they shift profits to meet minimum regulatory requirements. These financial maneuvers create a false sense of solvency, leaving the insurance companies vulnerable to collapse in the event of large-scale claims, while the CEOs walk away with profits.
3. Reinsurance Conflicts of Interest: Several insurance CEOs own reinsurance companies and funnel payments from their own insurance companies into these entities. This self-dealing lacks transparency and creates conflicts of interest, as the public is unaware of where their premium payments are truly going and how it weakens the insurance company’s ability to pay claims.
4. Citizens Insurance and Depopulation: When these companies become insolvent, Citizens Insurance is forced to step in and take over policies, only to later depopulate those policies back into the hands of the same CEOs' companies, creating a cycle of failure and exploitation.
5. Unlimited Control and Legislative Favoritism: Insurance CEOs are permitted to open as many insurance companies as they want, giving them full control over a large portion of the market. The strong legislative changes over the past six years have been heavily in their favor, decreasing coverage for homeowners and limiting their rights to recover the full cost of damages. These changes have created an environment where insurance companies, often owned by the same few CEOs, are not bringing in new competition but are instead consolidating power, creating monopolies, and controlling costs. Since these CEOs do not need to compete with themselves, there is no incentive to lower prices or improve coverage for Florida homeowners.
6. Unfair Steering Practices and Financial Conflicts: Insurance companies are using policy language that steers policyholders toward using vendors with financial relationships to the insurance company, including companies owned by the same CEOs who own the insurance company itself. This steering, often incentivized by waiving limits or offering other benefits, creates a conflict of interest and encourages the use of restoration companies owned by the insurance CEO. These practices are not only anti-competitive but also lack transparency, contributing to unfair trade practices. In many cases, homeowners are forced to permit unfamiliar contractors into their homes. If homeowners choose not to use these contractors, the insurance company can deny their claim entirely, refusing to pay for the damages. Homeowners are often unaware of these financial relationships and are pressured into using these vendors without the ability to make an independent, informed choice.
7. Office of Insurance Oversight: The Office of Insurance Regulation should not be allowed to approve insurance company policies with limits that are not supported by Florida state statutes. This lack of oversight permits companies to offer substandard coverage that leaves homeowners vulnerable in the event of a disaster. Policies must adhere strictly to state statutes to ensure homeowners are adequately protected and that insurance companies are held to consistent standards. If Florida statutes do not specify certain limits, this absence should not give insurance companies permission to set arbitrary limits. Any such limits must be expressly approved by legislators to ensure they are in the best interest of homeowners and comply with regulatory standards.

Governor DeSantis’ 2022 Promise vs. Reality: In 2022, Governor Ron DeSantis stated that the legislative changes being enacted were intended to reduce insurance costs and increase competition among insurance companies in Florida. However, nearly two years later, Florida homeowners have only experienced skyrocketing insurance costs with no relief in sight. While new insurance companies may have entered the market, they are often run by the same CEOs who have been responsible for the industry’s problems. These CEOs are simply restructuring their businesses, creating new models such as "Insurance Exchanges" to move existing Florida policies into these entities. These might be new companies in name, but they are still run by the same CEOs, operating out of the same buildings, and perpetuating the same practices. We are tired of this gaslighting—these so-called “new companies” are simply rebranded extensions of the same monopolistic practices that have plagued Florida’s insurance market. **We demand reform for the people, not for the insurance companies.*

We demand the Florida State Legislature take immediate action to:

• Limit CEO Ownership and Control: Insurance company CEOs must be prohibited from owning multiple insurance entities and affiliated companies to prevent the manipulation of funds and avoidance of regulatory accountability.
• Increase Transparency in Financial Reporting: All transactions between insurance companies and their affiliate businesses (such as reinsurance, restoration, and repair services) must be disclosed publicly, with transparency about ownership, payments, and the impact on solvency.
• Hold CEOs Accountable for Insolvency: CEOs who mismanage their companies into insolvency should be held personally accountable, including the revocation of their licenses to operate insurance businesses in Florida.
• Reform Citizens Depopulation Process:** Citizens Insurance must be prohibited from depopulating policies back to companies owned by the same CEOs responsible for prior insolvencies. This cycle of failure must end.
• Prohibit Steering and Conflicts of Interest: Insurance companies must be barred from using policy language that incentivizes or steers policyholders to use affiliated vendors with financial ties to the insurance company. All such financial relationships between insurance companies and restoration or repair companies must be fully disclosed, and homeowners must be given the freedom to choose their own contractors without penalty.
• Strengthen Regulatory Oversight: Regulatory authorities must have stronger oversight to ensure that insurance companies meet financial requirements without relying on shell games and profit shifting.
• Restore Homeowners' Rights: Legislative changes must be reversed to restore homeowners' rights to full coverage and fair cost recovery. The insurance market should foster true competition, which will bring down costs and protect consumers—not allow monopolies to control pricing with no incentive to improve.
• Ensure Statutory Compliance in Insurance Policies: The Office of Insurance Regulation must enforce compliance with Florida state statutes by rejecting any policies that attempt to circumvent statutory limits and coverage requirements. Homeowners must be guaranteed that the coverage they purchase aligns with the protections mandated by law. Additionally, if Florida statutes do not specify coverage limits, this should not grant insurance companies permission to set their own limits without legislative approval. Any such limits must be reviewed and approved by legislators to ensure they are in the best interest of consumers and fully transparent.

Why This Reform is Critical:

• Florida homeowners are being left in financial ruin when insurance companies collapse, and these practices are making the market less stable and more expensive.
• Insurance companies should exist to serve the public and fulfill their promises to policyholders, not to enrich CEOs at the expense of consumers.
• The current system enables exploitation while FIGA and Citizens bear the cost of failed companies, ultimately paid for by Florida taxpayers and homeowners.

We demand a system where insurance companies operate with transparency, accountability, and a true commitment to policyholders—not a system where CEOs are permitted to profit while leaving homeowners in financial peril.