A new bill aimed at enhancing transparency and accountability in Florida's insurance industry was the focal point of the House Insurance & Banking Subcommittee meeting on April 3, 2025. The legislation responds to concerns raised during previous hearings about insurance companies' business practices, particularly regarding their dealings with affiliates.

The proposed bill introduces several key measures, including defining "sufficient evidence" to prevent bad faith claims against liability insurers and authorizing the Florida Department of Law Enforcement (FDLE) to conduct background checks on insurance personnel. It also mandates that all affiliate payments comply with new standards and requires public adjusters to respond to claim statuses within 14 days.

Representative Griffith, who presented the bill, emphasized that the Office of Insurance Regulation (OIR) will oversee fair and reasonable payments from insurers to affiliates, using existing standards. This oversight aims to increase transparency and ensure that insurance companies operate within defined guidelines.

Committee members raised questions about the bill's potential impact on consumer insurance premiums. Griffith expressed hope that the legislation would ultimately lead to reduced premiums and enhanced consumer protections. However, concerns were voiced regarding the definitions of "fair and reasonable" payments and "sufficient evidence," with some members suggesting that clearer language could be beneficial.

The bill also includes provisions for regular reporting and oversight, with a review process set every three years. While some members questioned the adequacy of this timeframe, Griffith indicated that discussions could lead to adjustments based on ongoing feedback.

As the committee continues to refine the bill, it remains a critical step toward addressing the pressing issues within Florida's insurance landscape, aiming to foster a more transparent and consumer-friendly environment. The next steps will involve further discussions and potential amendments as the legislative process unfolds.