Lori Augustyniak: The real story behind Florida’s insurance market

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As the Professional Insurance Agents (PIA) of Florida, we feel compelled to address the recent article by Lawrence Mower, published on Feb. 22, 2025, in the Tampa Bay Times, titled “Florida Insurance Companies Steered Money to Investors While Claiming Losses, Study Says.”

While investigative journalism is crucial, we believe this article presents a misleading, incomplete, and flawed narrative that distorts the realities of Florida’s property insurance industry.

A misrepresentation of financial practices

The article suggests that insurers in Florida funneled billions to Managing General Agents (MGAs) and affiliates while citing hurricane-related losses from 2017-2019. This oversimplification ignores the legitimate financial structures necessary to operate in one of the most catastrophe-exposed insurance markets in the world. Insurers do not “hide” money — they allocate capital to affiliates for reinsurance, operational efficiency, and regulatory compliance. State regulators monitor this standard industry practice to ensure financial stability and protect policyholders.

Regulatory oversight

The Florida Office of Insurance Regulation (OIR) has full access to insurers’ financials, including all MGA contracts, investor returns, and affiliate transactions. If financial misconduct had occurred, it would have been addressed long before this so-called “secret study” surfaced. In fact, the OIR itself has stated: “The report does not clearly show where the capital was spent or conclude that all the monies were profit. The report does say additional oversight was needed, to which OIR has and continues to advocate for more regulatory control over MGAs.”

Why the market has struggled

The real story is Florida’s insurance market has faced serious challenges, but not because of financial mismanagement by insurers. The actual culprits are threefold: A decade-long legal crisis fueled by excessive litigation and lawsuit abuse, forcing insurers to fight more claims in court than the rest of the country combined; rampant fraud and inflated claims, particularly in roof replacements and assignment-of-benefits (AOB) abuse; and an unprecedented number of hurricanes in recent years, causing billions in losses that insurers were obligated to cover.

The critical context Floridians should know

The media has painted a one-sided picture that fails to acknowledge key facts: Eleven new insurers have entered the Florida market since 2023, thanks to recent reforms finally stabilizing the industry. Premium increases have slowed dramatically, with Florida seeing the country’s lowest average homeowners’ rate increases in 2024. Citizens Property Insurance is reducing its policy count, meaning the private market is strengthening — not weakening.

The bottom line? The reforms are working. The industry is recovering from the damage caused by past litigation abuse.

Conclusion: Facts over fear

Recent media coverage, riddled with half-truths, omissions, and political posturing, does a disservice to Floridians who rely on a functioning, stable insurance market. Instead of sensationalist headlines, we need to focus on real solutions, continued reforms, and an accurate portrayal of the facts.

The Professional Insurance Agents of Florida remain committed to truth, transparency, and the long-term stability of our industry.

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Lori Augustyniak is president of PIA of Florida and a partner at Horizon Insurance, a Trucordia agency.