The Florida Office of Insurance Regulation (OIR) has proposed ending its placement within the state’s Department of Financial Services (DFS). The plan would consolidate insurance oversight under the insurance commissioner.
The proposal, detailed in a memo to lawmakers and first reported by the Miami Herald, also criticized DFS for withholding large portions of consumer complaints and for employing staff without adequate training.
OIR provided a copy of the memo to BestWire but offered no additional comments.
OIR argued that Florida remains the only state where two separate agencies regulate insurance, which limits effective consumer protection.
The memo noted that over five years, DFS forwarded only 5.2% of property/casualty complaints to the insurance regulator. Of those, just 3.4% involved confirmed statutory violations, which the memo attributed to DFS staff’s insufficient ability to identify violations.
In contrast, OIR completed over 600 investigations and more than 20 market conduct exams in 2024. These efforts returned over $8 mn to consumers.
The memo stated that additional work could be done if OIR controlled the regional offices now under DFS, including direct engagement with policyholders.
OIR also identified structural problems that delay market supervision. It noted that the department must assess whether executives at failed insurers contributed to insolvency.
However, this task is handled by a DFS unit, requiring OIR to sign a legal agreement for access, then contract a third party to duplicate DFS’s work.
Administrative inefficiencies also stem from OIR’s current structure. Relying on DFS for human resources, facilities, and operations creates delays that could be avoided with full departmental independence.
Under the proposed change, OIR would remain a cabinet-level agency led by the commissioner. Responsibilities now split between OIR and DFS, such as agent and agency services, would transfer to the insurance department. This consolidation would allow faster identification and correction of statutory violations.
