Insurance Commissioner’s AI call-out
A strong performance by Florida property insurance companies, Florida’s insurance commissioner reveals what he’s doing to track AI use, a roofing contractor settles an accusation of unlicensed public adjusting, catastrophe losses are way down so far this year, plus surplus lines carriers will soon have to file market intelligence reports with regulators. It’s all in this week’s Property Insurance News.
Florida Market Strengthening: Gallagher Re’s 2025 year-end Florida Market Watch report provides more definitive proof that the state’s property insurance market is having a strong recovery from previously troubled times. The overall weighted-average combined ratio (the premium to loss ratio) fell to 82 by the end of 2025 compared to 104 at year-end 2024. That big drop, a key measure of profitability, is reflective of the report’s other key stats of the 61 insurance companies it tracked using NAIC and S&P’s Global Market Intelligence data. Direct written premiums grew 1.3% last year to about $33 billion: two-thirds of that was from Florida’s domestic carriers, whose premiums grew by 13.5%. The net underwriting gain was $3 billion among 46 of the 61 companies reporting a gain, with after-tax net income of $3.6 billion – again, the largest contributor being the domestic carriers. Surplus in 2025 grew as well, up almost 26% from 2025 to $16.4 billion, with domestics leading the way.
Florida Insurance Commissioner Michael Yaworsky, Courtesy, OIR
Insurance Companies Use of AI: Florida Insurance Commissioner Michael Yaworsky told attendees at the recent Insurance Summit that there’s a definite need for stronger oversight of the insurance industry’s use of artificial intelligence (AI), given its “staggering” pace of change, and put the burden on regulators to do so. He said it’s important that regulators everywhere “have the resources to make sure they understand what is going on, and it’s secondarily important that insurers that are implementing these products also understand what is going on.” Yaworsky said his Office of Insurance Regulation (OIR) has begun sending formal interrogatories to insurance companies to ask how they use AI in life and health insurance and will soon start doing so with property and casualty insurance filings. “It’s important that we understand what it is so that hopefully the public can have confidence, ultimately, in those products being offered.” He added that he believes current laws on unfair claims handling and trade practices can apply to carriers’ use of AI. A bill (HB 527) that would have mandated human reviews of insurance claims denials passed the Florida House this past session but didn’t receive a hearing in the Senate.
Global Cat Losses Down: Gallagher Re’s Q1 2026 Natural Catastrophe and Climate Report shows 2026 is off to a quiet start, so far. In the first quarter, estimated total economic losses from all global natural catastrophes were $58 billion, around 12% below the 10-year Q1 average. The losses covered by private and public insurance totaled about $20 billion, representing a 26% decline from the decade average. Those insured losses look even better comparing them to the recent five-year average of $132 billion, representing a 47% decline. I’ll be sitting down this week with Gallagher Re’s Chief Science Officer, Steve Bowen, for our Florida Insurance Roundup podcast to talk about another aspect of this report. It’s his look back at the past 18 years of growing losses – and the surprising role he discovered that non-hazard factors are playing in the increases.
Roofer Settlement: Apex Roofing and Restoration entered into a recent Consent Order issued by the Florida Department of Financial Services (DFS). As part of the agreement, Apex agrees to apply for a public adjusting license within 30 days and not to practice public adjusting activities without one. The Order puts an end to a 2022 case filed by DFS alleging that an Apex roof consultant and adjuster offered to do a free roof inspection that turned into an AOB insurance claim involving Apex filing and working the claim through the insurance company. The case was eventually turned over to the Division of Administrative Hearings and is likewise now dismissed. Florida’s Chief Financial Officer Blaise Ingoglia has made it clear that he will not tolerate noncompliance with Florida’s insurance laws, and this is just another example of his steadfast, consumer protection platform. While there’s no fine or sanction here – we expect that DFS will be watching!
Expanded Participants in Market Intelligence Reports: OIR is proposing to include surplus lines insurance companies to the entities required to file monthly Market Intelligence Reports with the regulator. The amendments in Rule 69O-137.009 extend the requirement to surplus lines effective January 31, 2027. The changes also clarify the filing requirement includes every insurer or insurer group writing commercial or residential property insurance in Florida. It also expands the definition of “insurer” to include authorized insurers and eligible surplus lines insurers, as defined in 626.914(2), F.S. OIR will hold a workshop to hear input on May 27 at 2pm.
LMA Newsletter of 5-4-26
