Florida’s Insurance Market Faces Collapse Amid Controversial Ratings Agency Claims

Florida’s insurance market is under scrutiny after Weiss Ratings founder Martin Weiss declared the market "on the brink of collapse." Following his dire warnings, which cited low claim payouts after hurricanes Helene and Milton, Florida’s Office of Insurance Regulation issued a subpoena demanding evidence to substantiate his claims. Weiss argues his statements are protected by the First Amendment and criticizes the state for not contacting him informally before the subpoena.

Weiss, whose agency has a history of challenging insurers, revealed data showing that over one-third of Florida homeowners’ claims went unpaid in 2022, with private insurers like subsidiaries of State Farm and Allstate closing nearly half of claims without payment. State-run Citizens Property Insurance led in closing claims without payment, attributed to high deductibles and uncovered flood damages.

Florida officials have defended their actions, citing the importance of transparency in consumer protection, while Weiss maintains that his statements reflect the reality of a collapsing market. The conflict highlights ongoing challenges in Florida’s insurance industry, which has been plagued by natural disasters, legal reforms, and financial instability.