Understanding Florida's Insurer Accountability Act

Introduction

In a move aimed at strengthening consumer protection and improving insurer transparency, the state of Florida has implemented the Insurer Accountability Act, a bipartisan insurance law that introduces a range of new duties and obligations for insurance companies and regulatory bodies, alongside increased penalties for noncompliance and willful misconduct.¹

Much of the impetus of the law arises from complaints levied against regional insurers in the wake of Hurricane Ian in 2022. Following a series of severe storms and a subsequent spate of insurance claims for the resulting property damage, national insurers began to pull back from the Florida market, leaving regional insurers with far fewer guarantees of solvency in their stead. A Washington Post investigation detailed numerous instances of these regional insurers attempting to reduce costs by altering homeowners' claims, slashing payouts, and denying coverage for storm-induced property damage.² The