A recent Tampa Bay Times article examining the financial practices of Florida’s property insurers has drawn sharp criticism from industry representatives, who argue that the report presents an incomplete and misleading picture of the market.
Lori Augustyniak, president of the Professional Insurance Agents of Florida, issued a letter rebutting claims that insurers funneled billions of dollars to investors while simultaneously reporting financial losses. She contends that the February 22, 2025, article overlooks key financial mechanisms that enable insurers to operate in a high-risk state.
“The suggestion that insurers are ‘hiding’ money misrepresents the standard financial structures necessary for solvency,” Augustyniak wrote. “These transactions, including capital allocations to affiliates, are subject to regulatory oversight and help insurers maintain reinsurance, improve efficiency, and comply with state regulations.”
A central point of contention in Augustyniak’s response is regulatory scrutiny. The Times article implies that insurers operate with little oversight, but Augustyniak counters that the Florida Office of Insurance Regulation (OIR) has full access to insurer financials, including contracts with Managing General Agents (MGAs), investor returns, and affiliate transactions.
She cites an OIR statement noting that while additional oversight may be warranted, the study referenced in the Times report does not conclusively show improper financial activity.
Rather than focusing on insurer finances, Augustyniak pointed to what she sees as the real drivers of Florida’s property insurance crisis:
While the Times article paints a bleak picture, Augustyniak argued that reforms enacted in recent years are stabilizing the market. Since 2023, 11 new insurers have entered the Florida market, and premium increases have slowed. Citizens Property Insurance, the state-run insurer of last resort, is also reducing its policy count - a sign, Augustyniak said, that the private market is strengthening.
At the core of Augustyniak’s letter is a broader critique of how Florida’s insurance market is portrayed in the media. She argued that coverage often lacks context and leans toward alarmism rather than a fact-based discussion of the industry’s challenges and progress.
“The reforms are working,” she wrote. “What we need now is continued progress, not misleading narratives that undermine confidence in the industry.”
Still, questions remain about whether the state’s insurance market is truly on the path to long-term stability or if deeper structural reforms will be needed. For now, both insurers and policyholders are watching closely.
