David Jolly Proposed Florida Insurance Affiliate Regulations
The gubernatorial nominee unveiled a plan to increase transparency regarding insurer payments to corporate affiliates.
Updated on Sept. 28, 2026 in Insurance
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Should states strictly limit how insurance companies move profits to their affiliated businesses?
Democratic gubernatorial nominee David Jolly announced a plan to regulate payments property insurance companies make to their corporate affiliates. His proposal follows the publication of a previously undisclosed state report revealing significant transfers of funds between related entities.
Why it matters
Jolly aims to reduce insurance premiums and increase market transparency for Florida homeowners who have faced rising costs. The proposal targets corporate structures that allow insurers to report operating losses while moving money to affiliated companies.
A state-funded report analyzed insurer profits from 2017 to 2019, identifying at least 20 companies that paid affiliates at rates exceeding fair and reasonable standards. During this period, insurers claimed $432 million in losses while transferring $1.3 billion in fees to corporate affiliates.
The players
David Jolly
He is the Democratic nominee for Florida governor who is centering his campaign on insurance market reform.
Byron Donalds
He is the Republican nominee for Florida governor and the political opponent of David Jolly.
Michael Yaworsky
He serves as the Florida Insurance Commissioner and described the state-funded report as an unfinalized draft.
The details
Insurance companies utilize complex structures to ship money to related firms, a practice that critics argue is used to circumvent profit caps and rate regulations. While the Florida House passed legislation this year to expand scrutiny of these relationships, the Florida Senate did not advance the measures.
Timeline
The state-funded report analyzed insurer profits from 2017 to 2019.
A consultant provided the profit report to the state in 2022.
The Florida House passed transparency legislation earlier in 2026.
News organizations published the secret state report on September 25, 2026.
Jolly announced his insurance regulation plan on September 28, 2026.
Market Landscape
Jolly proposes using the Florida hurricane catastrophe fund as the primary insurer for wind damage, marking a shift from current market structures. This proposal aims to disrupt the existing reliance on private insurers that frequently use affiliates to shift funds.
Homeowners may see increased transparency regarding how their insurance premiums are managed by parent corporations and their affiliates. The proposed reforms aim to lower costs for consumers by limiting the ability of insurers to claim losses while transferring significant fees.
The takeaway
Transparency in corporate affiliate payments remains a central issue in the Florida gubernatorial race. Voters will decide between competing visions for how to regulate insurance companies and lower property costs for residents.
Further reading
Learn more about the current Insurance landscape in Florida.
Live Poll
Should states strictly limit how insurance companies move profits to their affiliated businesses?
