About the Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary
responsibility for regulation, compliance and enforcement of statutes
relating to the business of insurance and the monitoring of industry
markets. The Office pursues its mission of public protection via
oversight of insurance company solvency, policy forms and rates,
market conduct performance and monitoring new company entrants
into the Florida market.
About the Insurance Commissioner
Kevin M. McCarty has served as an insurance
regulator since 1992 and became Florida’s first
appointed insurance commissioner in January
2003. Commissioner McCarty was appointed
by the Financial Services Commission, which is
comprised of the Governor and Florida Cabinet.
The Commissioner leads a multi-state, multiagency effort to evaluate claim settlement
practices, use of the U.S. Social Security
Administration’s Death Master File, and
compliance with unclaimed property laws for life insurance/annuity
companies. He has also has been instrumental in the formation of the
Non-Admitted Insurance Multi-State Agreement (NIMA) designed to
equitably distribute surplus lines taxes.
In January 2012, Commissioner McCarty began his yearlong term as
President of the National Association of Insurance Commissioners
(NAIC). Florida participates on 28 NAIC committees, task forces and
working groups.
The Commissioner continues to focus on stabilizing Florida’s
property insurance market and enhancing the state’s presence in the
international financial market. In October 2012, he was elected as a
vice chair of the International Association of Insurance Supervisors’
(IAIS) Executive Committee and serves on the Technical Committee,
ComFrame Oversight Task Force, as well as, the Joint Forum (a group
of international regulators from the insurance, banking and securities
sectors).
Commissioner McCarty received his bachelor’s degree and Juris
Doctor from the University of Florida.
1
Resources: Office of Insurance Regulation
Fiscal Year 2012-2013
Full-Time Employees
Total Budget*
283
$27,241,944
100% of the budget is derived from the Insurance Regulatory Trust Fund.
*FY 2012-2013 budget includes a special appropriations category
of $4,926,463 in budget authority for the outsourcing of financial
examinations. The Insurance Regulatory Trust Fund acts as a passthrough and insurers pay the cost of the examination to the Trust Fund;
therefore, it is revenue neutral.
Operating Costs (Fiscal Year 2012-2013)
Regulatory and Enforcement
Administration
94%
6%
Position Allocation (Fiscal Year 2012-2013)
Regulatory and Enforcement
Administration
93%
7%
Revenue Collected (Fiscal Year 2011-12)*
Insurance Premium Tax**
Fees
Penalties/Fines
**Insurance premium taxes are collected by the
Florida Department of Revenue.
2
$704,800,000
$1,925,148
$7,797,025
Insurance and Related Entities
As of June 30, 2012
The Office has oversight of 4,091 total insurance and related entities, of
which 154 are new entities (excluding advisory and rating organizations).
Property & Casualty
Life & Annuity
Health
Fraternal
Title
Other*
Citizens Property Insurance
Other Residual Markets **
Surplus Lines
New Entities
8
5
4
1
0
131
----5
Total Entities
998
435
72
37
20
2,350
1
6
174
Overview of Insurance Premium in Florida
Calendar Year 2011
Admitted
Property & Casualty
Life & Annuity
Health
Fraternal
Title
Other*
TOTAL
$33,461,169,198
$42,452,696,714
$28,314,410,510
$ 365,683,875
$ 720,516,165
$ 234,054,286
$105,548,530,748
Citizens Property Insurance
Other Residual Markets**
Surplus Lines Market
$ 3,084,341,549
$
18,304,140
$ 3,688,680,187
Total Written Premium
$112,339,856,624
*Other is specialty companies and entities that do not file with the NAIC.
**Residual markets are entities that sell coverage for consumers who
cannot obtain coverage through private companies in Florida.
3
Florida Domestic Insurance Companies
& Related Entities
As of June 30, 2012
Authority Category
Continuing Care Retirement Communities
Health Maintenance Organizations
Life & Health Insurers
Motor Vehicle Service Companies
Premium Finance Companies
Property & Casualty
Risk Purchasing Groups
Self-Insurance Funds
Service Warranty Associations
Third Party Administrators
Other*
Total Domestic Authorities**
Total Domestic Companies
Authorities
46
38
20
63
54
122
50
217
69
94
389
1,162
1,112
* The “Other” category includes 276 donor annuities.
** Companies are given “authority” to write multiple kinds of
insurance (e.g., a company may simultaneously be a Health
Maintenance Organization and a Third Party Administrator).
Therefore, the number of authorities exceeds the number of
companies.
4
Enforcement Actions
Fiscal Year 2011-2012
Financial/Regulatory
Certificates of Authority Suspended
8
Certificates of Authority Revoked
8
Administrative Fines/Fees
Life & Health Product Review
$
0
Property & Casualty Product Review
$
66,000
Specialty Product Administration
$
74,850
Market Conduct/Investigations
$
5,926,058
Life & Health Financial Oversight
$
91,500
Property & Casualty Financial Oversight
$
42,150
Surplus Lines Late Filing Fees
$
4,500
Bad Check Service Fees
$
165
Attorneys’ Fees
$
1,591,802
Total Administrative Fines/Fees
$ 7,797,025
Total Consumer Refunds*
$ 41,979,887
Public Hearings
Rate Hearings
11
Rule Hearings/Workshops
5
Other Hearings
1
*Consumer refunds represent monies returned to consumers due to
activities of the Market Investigations Business Unit, as well as excess
profits and rate refunds.
5
Regulatory Activities
Fiscal Year 2011-2012
Financial Reviews (Desk Audits)
Life & Health
Property & Casualty
Specialty
2,648
4,655
1,440
Market Conduct
Market Conduct Examinations
Market Conduct Investigations
69
1,021
Financial Field Examinations
Life & Health
Property & Casualty
Specialty
36
44
8
Form and Rate Filings Processed
Business Unit
Files
Life & Health
6,281
Time to Process
20 Days
Property & Casualty
8,405
65 Days
Total
14,686
Average 42 Days
Applications Statistics
In Fiscal Year 2011-2012, the Office processed 554 company
applications in an average of 37 days. These applications were either
approved, denied, withdrawn or deemed incomplete. In addition,
744 investigations of Officers and Directors were completed in an
average of 111 days.
6
Top 20
Personal Residential Writers in Florida
Policies as of December 31, 2011
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Citizens Property
Universal Property & Casualty
State Farm Florida
St. Johns Insurance
Security First
USAA
Castle Key Indemnity (Allstate)
Castle Key Insurance (Allstate)
Homeowners Choice
ASI Assurance
Florida Peninsula
American Integrity
Tower Hill Prime
American Bankers
United Property & Casualty
Florida Family
ASI Preferred
Tower Hill Signature
Universal Insurance
Southern Fidelity
Source: QUASRng, Florida Office of Insurance Regulation
7
Policies
1,423,160
578,825
453,997
174,021
147,080
142,733
131,759
127,540
122,737
113,603
112,372
106,052
104,594
96,381
95,036
87,059
78,977
78,816
76,559
74,556
Top 20
Personal Automobile Writers in Florida
Premium for Calendar Year 2011
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
(Premium in millions)
$ 2,464
$ 1,270
$694
$630
$622
$533
$523
$415
$408
$363
$260
$258
$222
$208
$181
$172
$170
$161
$143
$137
State Farm Mutual
GEICO General
Progressive American
Progressive Select
GEICO Indemnity
Allstate Fire & Casualty
Allstate Insurance
Allstate Property & Casualty
Government Employees
United Services Auto. (USAA)
Travelers Home & Marine
USAA Casualty
21st Century Centennial
Security National
Safeco Ins. Co. of Illinois
Liberty Mutual
United Automobile
Direct General
Metropolitan Casualty
Southern Owners
Source: National Association of Insurance Commissioners’ I-Site.
Premium is direct premium written and includes private passenger
auto, other auto liability and auto physical damage.
8
Life & Annuity Writers in Florida
Premium for Calendar Year 2011
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
(Premium in millions)
$2,112
$1,558
$1,446
$1,432
$1,202
$1,100
$1,044
$ 997
$ 970
$ 942
MetLife Investors USA
Pruco Life
Lincoln National Life
Jackson National Life
John Hancock Life
Transamerica Financial Life
Nationwide Life
Metropolitan Life
Transamerica Life
Allianz
Accident & Health Writers in Florida
Premium for Calendar Year 2011
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
(Premium in millions)
$6,126
$5,090
$4,859
$1,478
$1,289
$1,288
$1,273
$1,185
$ 869
$ 819
Blue Cross & Blue Shield
UnitedHealthcare Ins.
Humana Medical
Aetna Health Inc.
AvMed
UnitedHealthcare of Fla.
WellCare of Fla.
CarePlus Health Plans
Connecticut General Life
Coventry Health Care
Source: National Association of Insurance Commissioners’ I-Site
9
2011 World/States Premium Volume
Rank
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Country/State
Japan
United Kingdom
France
Germany
PR China
California
Italy
New York
South Korea
Canada
Netherlands
Florida
Texas
Pennsylvania
Australia
Spain
Taiwan
Brazil
India
Switzerland
Premium in billions
$ 655.4
$ 319.5
$ 273.1
$ 245.1
$ 221.8
$ 220.0
$ 160.5
$ 133.8
$ 130.3
$ 121.2
$ 110.9
$ 108.1
$ 106.3
$ 91.8
$ 89.0
$ 79.9
$ 78.4
$ 78.2
$ 72.6
$ 63.5
The United States has the most premium in the world at $1.658 trillion;
this list features state premiums, therefore, the United States is excluded.
Source: National Association of Insurance Commissioners (NAIC)
10
200 East Gaines Street
Tallahassee, Florida 32399
850-413-3140
www.floir.com
Twitter@FLOIR_comm
7th Edition
December 2012
Department of Financial Services
Consumer Help Line
877-693-5236 (in-state)
850-413-3089 (out-of-state)