Florida Insurance Industry – Governance, Risk and Compliance

The Florida insurance industry report provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation, and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. Moreover, it gives insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation, and legal system in the state. The report also includes the scope of non-admitted insurance in the state.

What are the market dynamics in the Florida insurance industry?

The insurance industry in Florida is governed by the Office of Insurance Regulations (OIR). It is responsible for monitoring the activities of insurers and other risk-bearing entities, including licensing, rates, policy forms, market conduct, claims, issuance of certificates of authority, solvency, premium financing, and administrative supervision.

The OIR regulates the Floridian insurance industry, according to the provisions stipulated in the Floridian Insurance Code. The code regulates the following aspects of the industry:

• Authorization of insurers and intermediaries
• Capital requirements, solvency margins, reserve requirements, and investment regulations
• Fees and taxes applicable to insurers and intermediaries
• Policyholder protection regulations
• Offenses and penalties

What are the types of licenses issued in the Florida insurance industry?

The different types of insurance licenses issued in the Florida insurance industry are life insurance license, non-life insurance license, license for insurance intermediaries, and license for reinsurance.

Life insurance license in the Florida insurance industry: Insurers with a life insurance license can underwrite and sell insurance contracts related to risks such as life and annuities.

Non-life insurance license in the Florida insurance industry: Non-life insurers underwrite and sell contracts related to fire, marine, surety, disability, plate glass, liability, workers’ compensation, common carrier liability, boiler and machinery, burglary, credit, sprinkler, team and vehicle, automobile, aircraft, mortgage guaranty, insolvency, legal insurance, and miscellaneous insurance.

License for insurance intermediaries in the Florida insurance industry: Insurance intermediaries, which include insurance agents and brokers, are the retail side of the insurance industry and act as mediators between the insurer and the insured. An intermediary sell, solicits and negotiates insurance contracts with customers on behalf of the insurance companies for compensation.

License for reinsurance in the Florida insurance industry: Reinsurers are insurance companies that sell insurance policies to other insurance companies, protecting them from the risk of unexpected financial losses. A reinsurer is not permitted to operate without authorization or a license.

Which other bodies oversee the Florida insurance industry?

The key bodies overseeing the Florida insurance industry market are the International Association of Insurance Supervisors (IAIS), National Association of Insurance Commissioners (NAIC), Federal Insurance Office (FIO), American Insurance Association (AIA), National Association of Mutual Insurance Companies (NAMIC), Property and Casualty Insurers of America (PCI), and Reinsurance Association of America (RAA).

International Association of Insurance Supervisors: The IAIS, established in 1994, is a membership-driven global organization that represents insurance regulators and supervisors of more than 200 jurisdictions in more than 140 countries. In addition to members, the association also includes 135 observers representing industry associations, professional associations, insurers, reinsurers, consultants, and international financial institutions. The IAIS formulates and issues various global insurance principles, standards, and guidance, provides training and support on issues related to insurance supervision, and organizes meetings and seminars for insurance supervisors. The IAIS works closely with other financial sector standard-setting bodies and international organizations to promote financial stability. It holds an annual conference where supervisors, industry representatives, and other professionals discuss developments in the insurance industry and topics affecting insurance regulation.

National Association of Insurance Commissioners: The NAIC is a voluntary association created and governed by chief insurance regulators from the country’s 50 states, the District of Columbia, and five US territories. It was created in 1871 to address the need to coordinate the regulation of multistate insurers. With the help of the NAIC, state insurance regulators conduct peer reviews, establish standards and best practices, and coordinate their regulatory oversight. The association’s main aim is to assist state insurance regulators in serving the public interest and achieving fundamental insurance regulatory goals.

Federal Insurance Office: The FIO was established under the US Treasury Department in accordance with the Dodd-Frank Act. It is headed by a director, appointed by the Secretary of the Treasury. The FIO is not a regulatory agency but plays an important role by providing expertise and advice regarding insurance to the Treasury Department and other US federal agencies. It works closely with the NAIC to engage in international discussions with US insurance regulators and to serve as an information source for the federal government.

American Insurance Association: The AIA was established in 1866 as a property-casualty insurance trade organization. The AIA consists of 325-member insurance companies including personal and commercial auto insurance, commercial property and liability cover for small businesses, workers’ compensation, homeowners’ insurance, medical malpractice cover, and product liability insurance. The objective of the AIA is to coordinate among the states, federal and international levels and formulate policies beneficial for property and casualty insurance.

National Association of Mutual Insurance Companies: The NAMIC is a property and casualty insurance trade association representing mutual insurance companies across the US as well as in Canada. In addition to mutual insurance companies, the NAMIC’s members include stock insurance companies, reinsurance companies, and industry vendor companies. The objective of the NAMIC is to provide leadership in advocacy, public policy, public affairs, and member support services.

Property and Casualty Insurers of America: PCI is a trade association representing nearly 1,000 property and casualty insurance companies. Its objective is to provide a healthy competitive insurance industry for the benefit of consumers and insurers. PCI provides data-driven information to legislators and regulators.

Reinsurance Association of America: The RAA is a trade association representing property and casualty reinsurers operating in the US. The RAA objective is to promote a globally competitive and financially robust regulatory environment that ensures healthy business for the reinsurers. Apart from reinsurers, reinsurance underwriters and intermediaries licensed in the US that are engaged in cross-border business are also members. The RAA is engaged in legislative and legal affairs. It also provides financial data on the industry and conducts reinsurance-specific education throughout the country.

Florida insurance industry, by association

To know more about key associations, download a free report sample

Market report scope

Scope:

• The report covers details of the insurance regulatory framework in Florida.
• The report contains details of the rules and regulations governing insurance products and insurance entities.
• The report lists and analyzes key trends and developments pertaining to the state’s insurance regulatory framework.
• The report analyzes the rules and regulations regarding the establishment and operation of insurance businesses in the state.
• The report provides details of taxation imposed on insurance products and insurance companies.

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the state.
• Gain insights into the insurance regulatory framework in Florida.
• Track the latest regulatory changes and expected changes impacting the Floridian insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the state.
• Understand key regulations and market practices regarding various types of insurance products.