Insurance Daily News

Georgia and Florida Insurers Face New Oversight After Elections

Georgia voters elected former state legislator and Atlanta City Council member Keisha Sean Waites as insurance commissioner, defeating incumbent John King 54% to 46%. Waites, who has FEMA experience, pledged to bar the use of ZIP codes and credit scores in pricing, freeze certain auto and homeowners rates, and speed claim payments.

John King, appointed in 2019 after a predecessor’s fraud conviction and elected to a full term in 2022, had previously secured legislation that prohibited use-and-file rate increases for auto insurers. He had not issued a statement by Nov. 4. The election was one of only four state insurance commissioner races nationwide.

In Florida, Republican U.S. Rep. Byron Donalds narrowly won the governor’s race with 50.02% of the vote over Democrat David Jolly’s 49%. Both candidates had promised reforms to the state’s property-insurance market, which has seen rate declines since 2022 reforms.

Donalds proposes a scorecard to evaluate insurers on claim-payment speed, prompting concern from carriers about legitimate delays after storms. He also seeks to end the Florida Hurricane Catastrophe Fund’s “cash buildup” factor—a 25% fee on reinsurance premiums imposed after Hurricane Wilma and made permanent in 2008—arguing its removal would lower property premiums.

The Catastrophe Fund warns that eliminating the buildup factor would increase reliance on debt and extend the time needed to replenish cash reserves after a major hurricane loss. Voters also approved Amendment 3 to the state constitution, reducing property taxes for some homeowners and potentially easing the cost of homeowners insurance.

Why it matters

Regulatory changes in Georgia and Florida could reshape pricing, claims handling, and capital requirements for insurers operating in two of the nation’s most active property-casualty markets.

FAQ

Who won the Georgia insurance commissioner race?
Keisha Sean Waites won with 54% of the vote, defeating John King who received 46%.

What reforms does Waites plan to implement?
She aims to bar ZIP code and credit-score based pricing, freeze some auto and homeowners rates, and speed up claims payments.

What is Byron Donalds’ proposal for the Florida Hurricane Catastrophe Fund?
Donalds wants to end the 25% cash buildup fee on reinsurance premiums, saying it would lower property premiums.

What did Florida voters approve that could affect homeowners insurance costs?
Amendment 3, which reduces property taxes for some homeowners, potentially giving insureds more budget flexibility.

Source: Insurance Journal. See the original source for full details.