Florida Governor Ron DeSantis signed legislation creating a commercial insurance clearinghouse designed to move eligible policies from Citizens Property Insurance Corporation into the surplus lines market, according to BestWire.
The new law, previously introduced as Senate Bill 1028, allows surplus lines insurers to assume commercial residential and commercial nonresidential policies from Citizens.
Eligible insurers must hold an A- or higher financial strength rating and an A-VII financial size category from AM Best.
The legislation requires policyholders to accept an offer from a surplus lines insurer if the coverage remains comparable and the premium does not exceed the Citizens premium by more than 15%. Lawmakers reduced the threshold from the original 20% proposed earlier in the legislative process.
According to Beinsure, the clearinghouse expands Florida’s strategy to shift more insurance risks into the private market and reduce Citizens Property Insurance Corporation’s exposure.
State Senator Joe Gruters, who introduced the bill, said the clearinghouse will provide policyholders with more competitive insurance offers, including broader coverage terms and lower pricing where available. He said the system will serve as a final review to confirm private market options have been exhausted before Citizens issues a commercial policy.
Back in 2013, the legislature allowed Citizens to set up two separate clearinghouses; one for homeowners and one for commercial properties. While the homeowners clearinghouse was created, and has been successful, the commercial one was never fully implemented.
Joe Gruters, State Senator
Gruters noted that lawmakers authorised separate clearinghouses for homeowners and commercial properties in 2013. The homeowners programme became operational and contributed to policy transfers, while the commercial clearinghouse never reached full implementation.
The legislation requires the surplus lines clearinghouse to become fully operational by January 1, 2027.
The measure forms part of Florida’s broader effort to reduce Citizens Property Insurance Corporation’s policy count. The insurer’s book of business declined from 779,552 policies in June 2025 to 293,404 policies as of June 12, 2026, reflecting continued movement of risks into the private insurance market.
