Latest news with #Yaworsky
Yahoo
31-05-2025
- Business
- Yahoo
Insurance costs edge higher for Florida homeowners and condo owners
The upward rise in costs for homeowner insurance in Florida resumed during the first quarter of 2025, with average premium costs edging higher after dipping slightly in late 2024, new data released by the Florida Office of Insurance Regulation shows. The average premium paid by owners of single-family homes in Florida increased by 0.3% — climbing from $3,646 to $3,658 — between the fourth quarter of 2024 and the first quarter of 2025, according to a South Florida Sun Sentinel comparison of figures released in the office's quarterly Residential Market Share Report. Condo unit owners saw their costs increase by 0.8%, from $1,714 to $1,729 during the period, the data shows. Homeowner insurance costs fell by 0.7% in fourth quarter of 2024 Home insurance costs in Florida spiked in third quarter. Are more increases on the way? Condo association insurance costs doubled since 2022, new data shows Your insurance costs won't climb so high this year. All bets are off if we get a lot of hurricanes. Since the enactment of reforms in 2022 aimed at sharply reducing litigation costs for insurers, average premiums have increased 30.7% for homeowners and 28.8% for condo unit owners. The first-quarter hikes followed cost decreases of less than 1% for homeowner policies and 1.7% for condo unit policies during the fourth quarter of 2024. That was the only quarter with cost decreases since the release of the reports began in 2022. The office released the latest data without comment and Insurance Commissioner Michael Yaworsky did not respond to an email from the Sun Sentinel. An office spokeswoman said she did not believe that Yaworsky would be able to address the increases prior to this news article's publication. Mark Friedlander, senior director of media relations for the industry-funded Insurance Information Institute, attributed the increase to 'higher replacement costs due to inflationary impacts of construction materials and labor.' He also pointed out that the 'slight increase is far below most other hurricane-prone coastal states, which are experiencing double-digit premium increases.' The data showing the cost increases for Florida consumers followed the release of an analysis by insurance ratings firm AM Best noting improvements in the state's insurance market. In addition to achieving, in 2024, the market's first collective underwriting profit in eight years, the AM Best report cited the emergence of 13 new private-market insurers, stabilizing premiums and reinsurance costs, and a sharp reduction in policies held by state-run Citizens Property Insurance Corp., the state's so-called insurer of last resort. The improvements were made possible, AM Best said, by tort reforms enacted in 2022 and 2023 by the Florida Legislature and governor to reduce runaway litigation costs that were driving losses within the industry. During debate in the Legislature over the reforms, insurance insiders predicted that costs for consumers, then rising sharply, would stabilize or even be reduced after litigation that was underway had a few years to work its way through the courts. Prior to the start of the 2025 legislative session, Yaworsky joined Gov. Ron DeSantis at a news conference touting the number of insurers that submitted requests for lower or unchanged rates. Critics, however, said the reforms have gone too far, adding to insurer profits while leaving policyholders with less leverage over claims disputes. A bill was backed by plaintiffs attorneys that would have reinstated requirements for insurers that lose claims disputes to pay plaintiffs' legal fees. It passed the House but was not advanced in the Senate. Insurance premiums increased for 41 of 61 carriers with 1,000 or more policies, according to the analysis. The Cincinnati Insurance Co. charged the largest premium increase — 45.7% — among the group of Florida-registered insurers. While its policy count decreased from 1,631 to 1,009, its average premium increased from $11,014 to $16,044. Average risk covered by the Fairfield, Ohio-based company is $2.8 million. Truck Insurance Exchange's 2,390 policyholders saw the second-largest increase, 16.1%, as premiums swelled from $2,059 to $2,390. Premium costs for 20 companies increased by less than 2% and customers of 17 companies saw their premiums decrease, on average, between 0.2% and 9.3% Companies with lower premiums included Florida-based Edison, Florida Peninsula, Security First, Monarch National, American Integrity, ASI Preferred, Safe Harbor, Orange and Safeport. Costs for Citizens customers declined by 1.9%, from $3,348 to $3,283. The Sun Sentinel's calculations excluded two companies from the fourth and first quarters and a third company from the first quarter. Fourth-quarter data reported by two of the companies contained obvious glitches that would have skewed results. The third company did not report its data in the fourth quarter but resumed reporting in the first quarter. Including that company's data in the analysis would have made the first-quarter increases appear artificially large. Condo associations saw relief for the third straight quarter as premiums fell by 5.3% following decreases of 2.5% and 3.0%. Condo association premiums had increased by an average 103% between June 2022 and June 2024 amid concerns about tightening inspection and maintenance requirements. Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at rhurtibise@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Journals
22-04-2025
- Business
- Business Journals
Florida insurance agency urges probe into Tampa senior living mismanagement
Florida's insurance agency is urging a criminal investigation into the mismanagement of a now-defunct Tampa senior living facility that allegedly deceived regulators about its poor financial condition before filing for bankruptcy. After a yearlong examination of Tampa Life Plan Village's facility in North Tampa, Unisen Senior Living, the Florida Office of Insurance Regulation found nine 'significant and damning' violations of Florida law, according to a report released Monday. Tampa Life's financial mismanagement ultimately forced more than 100 elderly residents to relocate, and many have yet to be reimbursed for tens of thousands of dollars they paid in entry fees, per court documents. FLOIR claims Tampa Life and Big Rock Management Company, the managers of day-to-day operations at the facility, filed financial statements with material errors that misrepresented the facility's solvency during the three years they were in control, according to the report. In some cases, financial reports were never filed. Tampa Life purchased the facility, formerly University Village, out of bankruptcy in 2020 but struggled to revive operations, per the report. University Village was the subject of a similar fraud investigation in 2015 before it filed for bankruptcy in 2016. As financial challenges mounted in late 2023, Tampa Life engaged with potential buyers to sell the facility but with no success. Only 21% of the building was occupied, and the remaining residents were forced to relocate due to Tampa Life's inability to honor its financial obligations, FLOIR said in the report. 'The level of mismanagement in this case and pure lack of empathy and quality of care for Tampa Life's senior residents was unprecedented and shocking,' said Michael Yaworsky, Florida insurance commissioner. Tampa Life owed approximately $130 million to creditors when it filed for Chapter 11 in April 2024, shortly after it notified FLOIR of its insolvency. A Tampa bankruptcy judge approved Tampa Life's plan to liquidate in December and the facility has since been permanently closed. Representatives for Tampa Life did not immediately respond to a request for comment. Yaworsky referred the report to the Florida Department of Financial Services' bureau of criminal investigation. The agency stressed the need for greater legal authority to strengthen its oversight of assisted living facilities. The bankruptcy of University Village was foundational for legislative reforms in 2019 that expanded FLOIR's authority over senior living.
Yahoo
10-04-2025
- Business
- Yahoo
Florida's insurance czar threatens penalties for mishandling hurricane claims
Editor's note: This story is available as a result of a content partnership between WFTV and the Orlando Business Journal. Florida Insurance Commissioner Michael Yaworsky sent a firm warning to insurance companies that his office is closely watching how they handle hurricane claims and won't hesitate to punish wrongdoers. Industry reports published during the devastating 2024 hurricane season raised controversy over the abnormally high rate of claims denials in the Florida market, with some claiming insurers avoid paying homeowners through fraud and manipulation. Yaworsky referenced 'recent questionable allegations' that some insurers are refusing to pay valid claims from hurricanes Helene and Milton when he said his office is bringing new enhanced reporting requirements for claims. He has reshaped the regulatory agency with an aggressive enforcement agenda since taking office in early 2023, with dozens of fines issued and millions of dollars returned to consumers. Click here to read the full story on the Orlando Business Journal's website. Click here to download our free news, weather and smart TV apps. And click here to stream Channel 9 Eyewitness News live.
Yahoo
04-04-2025
- Business
- Yahoo
As the insurance crisis spiraled, did Florida bury consumer complaints?
TALLAHASSEE — In an extraordinary criticism of one state agency by another, Florida's Office of Insurance Regulation told legislators that a department led by then-Chief Financial Officer Jimmy Patronis may have buried thousands of complaints Floridians made against property insurance companies. Patronis' office referred 5.2% of the property insurance complaints it received over a five-year period to regulators for possible violations of state law, indicating 'potential underreporting,' Florida's Office of Insurance Regulation wrote in newly disclosed memos obtained by the Times/Herald. That low referral rate made it harder for regulators to police the industry, the memos said. Consumers lodged more than 52,000 complaints against property insurers during the period. The memos, given to legislative leaders, were produced as part of a tug-of-war between two agencies and a bid to consolidate insurance oversight under one roof. Florida is the only state that splits insurance regulation between two agencies. The consolidation push began before this year's legislative session and after Patronis announced he was leaving to run for Congress. He won a special election to the Panhandle seat Tuesday after serving seven years as CFO. 'This bifurcation has hindered the state's ability to adequately protect consumers,' one of the memos says. The memos questioned the training of Patronis' employees, said that his office was missing complaints against pharmacy benefit managers and argued that consolidation would allow the state to better police insurers' use of affiliate companies. House and Senate leaders haven't endorsed the idea of consolidating insurance oversight, and it's not in legislation introduced this session. Spokespeople for House Speaker Daniel Perez, R-Miami, and Ben Albritton, R-Wauchula, said they were open to the idea, however. On one side is the Office of Insurance Regulation. It handles insurers' rate filings, polices their conduct and determines when companies are insolvent. It's led by the state's insurance commissioner, Mike Yaworsky, who is appointed by the governor and Cabinet. On the other side is the Department of Financial Services. It oversees consumer insurance complaints, regulates insurance agents and takes over insolvent insurers. It's usually led by the elected chief financial officer, but that position is now vacant. The split dates to 2003, and it has rankled insurance commissioners ever since. Yaworsky for one is open to reform. He said he wanted 'a vigorous defense of consumers when they're approaching their state with an insurance problem.' 'I'm hoping that if there is discussion around this, whatever the outcome is, it leads to a really robust framework around ensuring that consumers are protected,' Yaworsky told the Times/Herald. Yaworsky spelled out in the memos the downsides of splitting regulation, saying his office can see what insurers are doing but often doesn't hear about consumer complaints. 'It has hindered the state's ability to evaluate and regulate the entire insurance market,' the memos state. Yaworsky has stepped up enforcement of the industry since DeSantis nominated him for the job in 2023. He's ordered insurers to stop gaming their rate increase requests to avoid public hearings, stopped them from hiring executives of failed companies and asked lawmakers for more enforcement powers. Yaworsky's memos questioned the quality of the complaints his office was being sent by the Department of Financial Services. The department is supposed to send complaints where companies might have violated state law. But of the complaints Yaworsky's office received, nearly half didn't name any violations, the memos said. Such a low rate was a 'likely indicator' that staff in Patronis' office is 'not adequately trained to identify violations,' the memos state. The 'issue is made even more stark,' the memos state, when looking at complaints pharmacists have made about pharmacy benefit managers, health care middlemen that have been blamed for skyrocketing drug prices. In 2024, pharmacists made 142 complaints to Patronis' department about pharmacy benefit managers. The department closed 34 and referred 11 to the Office of Insurance Regulation. It's not clear what happened with the rest. Meanwhile, the memos asserted, the department wasn't capturing complaints made by patients because the department wasn't coding them properly. Consolidating regulation would also give the Office of Insurance Regulation more oversight of insurers' affiliate companies, the office wrote. A 2022 analysis produced by the office and revealed by the Times/Herald last month found that insurance companies claimed to lose money between 2017 and 2019 while their affiliates made billions. The Department of Financial Services did not respond to questions by the Times/Herald about the memos. One reason why so few complaints are being forwarded to the Office of Insurance Regulation could be because Patronis' department doesn't investigate complaints if the homeowner has also sued their insurer. That fact isn't mentioned in the office's memos. Patronis historically took a light touch to the insurance industry. He did not come out in favor of Yaworsky fining an insurance company $1 million for Hurricane Ian violations last year. Patronis also pushed to seal records that would shed light about why insurance companies go out of business. His office was supposed to investigate claims by insurance adjusters who said the companies they worked for manipulated their estimates to lowball homeowners. But Patronis' office never brought charges against the companies and never released the records about his office's investigations. Two Republican state senators vying to replace Patronis said they saw the memos but had different conclusions. Sen. Blaise Ingoglia, R-Spring Hill, called the lack of information-sharing 'very concerning.' 'By withholding some of that information, we're not doing what we are probably supposed to be doing,' he said. 'It's a disservice to the people who are making those complaints.' Ingoglia said he didn't know enough to say whether insurance regulation should be consolidated. Sen. Joe Gruters, R-Sarasota, said he spoke to Patronis about the idea, who 'thought it was a mistake, really, on numerous fronts.' He said splitting regulation resulted in a 'checks and balances' of oversight. He said the Office of Insurance Regulation was making a 'power move' by trying to assume control. He said the office already had access to the state's complaint data. (Yaworsky said the data is 'problematic' and makes it 'difficult' for his office to find violations of law.) If anything, insurance regulation should be solely under the elected chief financial officer so 'that person can be held accountable,' Gruters said.
Miami Herald
04-04-2025
- Business
- Miami Herald
Florida insurance regulators question oversight by office run by newly elected U.S. rep
In an extraordinary criticism of one state agency by another, Florida's Office of Insurance Regulation told legislators that a department led by then-Chief Financial Officer Jimmy Patronis may have buried thousands of complaints Floridians made against property insurance companies. Patronis' office referred 5.2% of the property insurance complaints it received over a five-year period to regulators for possible violations of state law, indicating 'potential underreporting,' Florida's Office of Insurance Regulation wrote in newly disclosed memos obtained by the Herald/Times. That low referral rate made it harder for regulators to police the industry, the memos said. Consumers lodged more than 52,000 complaints against property insurers during the period. The memos, given to legislative leaders, were produced as part of a tug-of-war between two agencies and a bid to consolidate insurance oversight under one roof. Florida is the only state that splits insurance regulation between two agencies. The consolidation push began before this year's legislative session and after Patronis announced he was leaving to run for Congress. He won a special election to the Panhandle seat Tuesday after serving seven years as CFO. 'This bifurcation has hindered the state's ability to adequately protect consumers,' one of the memos states. The memos questioned the training of Patronis' employees, said that his office was missing complaints against pharmacy benefit managers and argued that consolidation would allow the state to better police insurers' use of affiliate companies. House and Senate leaders haven't endorsed the idea of consolidating insurance oversight, and it's not in legislation introduced this session. Spokespeople for House Speaker Daniel Perez, R-Miami, and Ben Albritton, R-Wauchula, said they were open to the idea, however. On one side is the Office of Insurance Regulation. It handles insurers' rate filings, polices their conduct and determines when companies are insolvent. It's led by the state's insurance commissioner, Mike Yaworsky, who is appointed by the governor and Cabinet. On the other side is the Department of Financial Services. It oversees consumer insurance complaints, regulates insurance agents and takes over insolvent insurers. It's usually led by the elected chief financial officer, but that position is now vacant. The split dates to 2003, and it has rankled insurance commissioners ever since. Yaworsky for one is open to reform. He said he wanted 'a vigorous defense of consumers when they're approaching their state with an insurance problem.' 'I'm hoping that if there is discussion around this, whatever the outcome is, it leads to a really robust framework around ensuring that consumers are protected,' Yaworsky told the Herald/Times. Yaworsky spelled out in the memos the downsides of splitting regulation, saying his office can see what insurers are doing but often doesn't hear about consumer complaints. 'It has hindered the state's ability to evaluate and regulate the entire insurance market,' the memos state. Yaworsky has stepped up enforcement of the industry since DeSantis nominated him for the job in 2023. He's ordered insurers to stop gaming their rate increase requests to avoid public hearings, stopped them from hiring executives of failed companies and asked lawmakers for more enforcement powers. Yaworsky's memos questioned the quality of the complaints his office was being sent by the Department of Financial Services. The department is supposed to send complaints where companies might have violated state law. But of the complaints Yaworsky's office received, nearly half didn't name any violations, the memos said. Such a low rate was a 'likely indicator' that staff in Patronis' office is 'not adequately trained to identify violations,' the memos state. The 'issue is made even more stark,' the memos state, when looking at complaints pharmacists have made about pharmacy benefit managers, health care middlemen that have been blamed for skyrocketing drug prices. In 2024, pharmacists made 142 complaints to Patronis' department about pharmacy benefit managers. The department closed 34 and referred 11 to the Office of Insurance Regulation. It's not clear what happened with the rest. Meanwhile, the memos asserted, the department wasn't capturing complaints made by patients because the department wasn't coding them properly. Consolidating regulation would also give the Office of Insurance Regulation more oversight of insurers' affiliate companies, the office wrote. A 2022 analysis produced by the office and revealed by the Herald/Times last month found that insurance companies claimed to lose money between 2017 and 2019 while their affiliates made billions. The Department of Financial Services did not respond to questions by the Herald/Times about the memos. One reason why so few complaints are being forwarded to the Office of Insurance Regulation could be because Patronis' department doesn't investigate complaints if the homeowner has also sued their insurer. That fact isn't mentioned in the office's memos. Patronis historically took a light touch to the insurance industry. He did not come out in favor of Yaworsky fining an insurance company $1 million for Hurricane Ian violations last year. Patronis also pushed to seal records that would shed light about why insurance companies go out of business. His office was supposed to investigate claims by insurance adjusters who said the companies they worked for manipulated their estimates to lowball homeowners. But Patronis' office never brought charges against the companies and never released the records about his office's investigations. Two Republican state senators vying to replace Patronis said they saw the memos but had different conclusions. Sen. Blaise Ingoglia, R-Spring Hill, called the lack of information-sharing 'very concerning.' 'By withholding some of that information, we're not doing what we are probably supposed to be doing,' he said. 'It's a disservice to the people who are making those complaints.' Ingoglia said he didn't know enough to say whether insurance regulation should be consolidated. Sen. Joe Gruters, R-Sarasota, said he spoke to Patronis about the idea, who 'thought it was a mistake, really, on numerous fronts.' He said splitting regulation resulted in a 'checks and balances' of oversight. He said the Office of Insurance Regulation was making a 'power move' by trying to assume control. He said the office already had access to the state's complaint data. (Yaworsky said the data is 'problematic' and makes it 'difficult' for his office to find violations of law.) If anything, insurance regulation should be solely under the elected chief financial officer so 'that person can be held accountable,' Gruters said.
