Concerns Rise Among Brokers and Regulators Over Florida’s Commercial Clearinghouse Bill

A bill currently progressing through the Florida Legislature has sparked significant controversy among insurance agents and brokers. Many are concerned that it may favor a single large brokerage while imposing fees and limiting flexibility for others regarding takeouts of Citizens Property Insurance commercial policies.

“The main question I have is, ‘What is the problem that this is trying to solve?’” remarked Chris Siegel, Florida vice president at Burns & Wilcox, a surplus lines brokerage. He emphasized that the industry is already functioning effectively without a surplus lines clearinghouse.

This discussion centers around Florida Senate Bill 1028, introduced by state Sen. Joe Gruters, who chairs the Senate Banking and Insurance Committee. The bill mandates that Citizens establish a clearinghouse for brokers and agents to facilitate the placement of commercial property coverage with lightly regulated excess and surplus lines carriers.

Gruters’ committee unanimously approved the bill in January, followed by the Appropriations Committee on Agriculture, Environment, and General Government on February 6. The measure is now set for one more committee review in the Senate, along with a companion bill in the House.

“It’s moving,” noted one Florida lobbyist.

While the bill may seem innocuous at first glance, aiming to create a framework similar to the clearinghouse for personal lines policies, Florida Insurance Commissioner Michael Yaworsky raised significant concerns during a recent committee hearing. He warned that establishing a commercial clearinghouse could cost up to $40 million, a hefty price for a relatively small number of commercial policies.

“Why spend that much money for just 3,000 policies—at the most?” questioned Dulce Suarez-Resnick, a commercial agent and vice president at Acentria Insurance in Miami.

Insiders familiar with the bill have suggested it appears to favor one company: Ryan Turner Specialty, part of one of the largest wholesale brokerages in the country. A confidential document circulated in Tallahassee indicates that Ryan has already begun developing “The Florida Risk Exchange—An AI-Enabled Ryan Specialty Enterprise.”

This exchange aims to facilitate the depopulation of the Citizens program, restoring it to its intended role as a last-resort market while allowing insureds, risk managers, and brokers to focus on strategic risk management.

Although the bill does not explicitly mention RT, it requires the clearinghouse to be operational by January 1, 2027—a tight deadline that could give Ryan’s exchange a competitive advantage.

Furthermore, the clearinghouse administrator would have the authority to decide when agents can proceed with Citizens quotes or must seek market alternatives, potentially placing Ryan’s enterprise in a position to control some business from other brokers.

The bill also raises the possibility of new fees for brokers, as coverage terms submitted to the clearinghouse administrator must include all fees and surcharges. Yaworsky expressed concerns about this arrangement, noting that commissions paid to agents would not cover these surcharges. The full bill can be read here, and a legislative analysis is available here.

The bill gained traction after the Tampa Bay Times reported that its chief supporters include Patrick Ryan, co-founder and chairman of Ryan Specialty, a significant contributor to Republican candidates and causes. Ryan’s representatives have been actively lobbying regulators and lawmakers in recent weeks.

Gruters, who also chairs the Republican National Committee, stated that he had advocated for the exchange long before the Ryan family’s political contributions came to light, asserting that other companies have also proposed similar ideas to Citizens.

While Ryan Specialty’s leadership was unavailable for comment, their chief communications officer stated that Citizens has historically competed with the private market for commercial policies, concentrating a disproportionate amount of exposure in the state-created insurer.

“Ryan Specialty supports the development of responsible and innovative surplus lines solutions that help address these challenges,” the statement read. “Expanding access to a broader range of insurance markets for Florida commercial businesses, while reducing the state’s exposure to volatility during future storm seasons, is a constructive outcome for all stakeholders.”

Suarez-Resnick countered that Citizens’ depopulation efforts have been effective, with the corporation’s overall policy count now a third of what it was three years ago, thanks to recent litigation reforms and improvements in the Florida insurance market. Many agents are now adept at finding alternative insurers, including surplus lines carriers, to take on Citizens’ commercial policies.

As of January this year, Citizens reported 6,180 commercial and commercial residential policies in force, a 43% decrease from the previous year.

“This clearinghouse might have been a good idea four years ago, but not now,” Suarez-Resnick stated.

Although commercial policies are fewer in number than personal lines, they can still be worth millions of dollars, making them highly sought after by brokers and carriers alike. Citizens reported nearly $200 million in premium for commercial policies last month.

Not all Florida agents and brokers oppose the bill. Some believe that if the language is adjusted to ensure only the largest and healthiest surplus carriers can participate, it could help address coverage challenges for properties struggling to find insurance. Matt Mercier, national practice leader for CBIZ Insurance Services, emphasized the importance of stringent requirements.

The bill stipulates that surplus insurers in the commercial clearinghouse must have a financial strength rating of “A-” or better and a financial size category of A-VII, as determined by the AM Best financial rating firm. Mercier argued that the requirement should be at least an A-VIII or even an A-XII rating to better protect policyholders from potential failures of surplus carriers, which would not be covered by the Florida Insurance Guaranty Association.

“The distinction between an A-VII and an A-XII insurer is not merely technical; it reflects a substantial difference in policyholders’ surplus and capital strength,” Mercier explained in an email. “An A-XII insurer typically maintains approximately 10 to 20 times the surplus of an A-VII insurer.”

As the debate continues, concerns regarding Gruters’ exchange bill are gaining momentum, especially after it initially sparked little discussion during the first month of the 2026 legislative session. Many Florida insurance agents have expressed frustration with Citizens’ personal lines clearinghouse technical issues, and they are wary of introducing another potentially problematic platform.

Yaworsky’s remarks during the Senate committee hearing surprised many and seem to have strengthened opposition to the bill. He acknowledged that while the depopulation of Citizens is a commendable goal, SB 1028 could negatively impact brokers, agents, and insureds.

“If a policyholder has a relationship with a broker, that relationship could be severed under the clearinghouse proposal,” Yaworsky warned. “The broker-administrator-vendor that is ultimately hired by Citizens for this service essentially becomes the broker on both ends of the transaction. That is a concerning provision for any insurance regulator from the consumer perspective.”

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Commercial Lines

A bill currently progressing through the Florida Legislature has sparked significant controversy among insurance agents and brokers. Many are concerned that it may favor a single large brokerage while imposing fees and limiting flexibility for others regarding takeouts of Citizens Property Insurance commercial policies.

“The main question I have is, ‘What is the problem that this is trying to solve?’” remarked Chris Siegel, Florida vice president at Burns & Wilcox, a surplus lines brokerage. He emphasized that the industry is already functioning effectively without a surplus lines clearinghouse.

This discussion centers around Florida Senate Bill 1028, introduced by state Sen. Joe Gruters, who chairs the Senate Banking and Insurance Committee. The bill mandates that Citizens establish a clearinghouse for brokers and agents to facilitate the placement of commercial property coverage with lightly regulated excess and surplus lines carriers.

Gruters’ committee unanimously approved the bill in January, followed by the Appropriations Committee on Agriculture, Environment, and General Government on February 6. The measure is now set for one more committee review in the Senate, along with a companion bill in the House.

“It’s moving,” noted one Florida lobbyist.

While the bill may seem innocuous at first glance, aiming to create a framework similar to the clearinghouse for personal lines policies, Florida Insurance Commissioner Michael Yaworsky raised significant concerns during a recent committee hearing. He warned that establishing a commercial clearinghouse could cost up to $40 million, a hefty price for a relatively small number of commercial policies.

“Why spend that much money for just 3,000 policies—at the most?” questioned Dulce Suarez-Resnick, a commercial agent and vice president at Acentria Insurance in Miami.

Insiders familiar with the bill have suggested it appears to favor one company: Ryan Turner Specialty, part of one of the largest wholesale brokerages in the country. A confidential document circulated in Tallahassee indicates that Ryan has already begun developing “The Florida Risk Exchange—An AI-Enabled Ryan Specialty Enterprise.”

This exchange aims to facilitate the depopulation of the Citizens program, restoring it to its intended role as a last-resort market while allowing insureds, risk managers, and brokers to focus on strategic risk management.

Although the bill does not explicitly mention RT, it requires the clearinghouse to be operational by January 1, 2027—a tight deadline that could give Ryan’s exchange a competitive advantage.

Furthermore, the clearinghouse administrator would have the authority to decide when agents can proceed with Citizens quotes or must seek market alternatives, potentially placing Ryan’s enterprise in a position to control some business from other brokers.

The bill also raises the possibility of new fees for brokers, as coverage terms submitted to the clearinghouse administrator must include all fees and surcharges. Yaworsky expressed concerns about this arrangement, noting that commissions paid to agents would not cover these surcharges. The full bill can be read here, and a legislative analysis is available here.

The bill gained traction after the Tampa Bay Times reported that its chief supporters include Patrick Ryan, co-founder and chairman of Ryan Specialty, a significant contributor to Republican candidates and causes. Ryan’s representatives have been actively lobbying regulators and lawmakers in recent weeks.

Gruters, who also chairs the Republican National Committee, stated that he had advocated for the exchange long before the Ryan family’s political contributions came to light, asserting that other companies have also proposed similar ideas to Citizens.

While Ryan Specialty’s leadership was unavailable for comment, their chief communications officer stated that Citizens has historically competed with the private market for commercial policies, concentrating a disproportionate amount of exposure in the state-created insurer.

“Ryan Specialty supports the development of responsible and innovative surplus lines solutions that help address these challenges,” the statement read. “Expanding access to a broader range of insurance markets for Florida commercial businesses, while reducing the state’s exposure to volatility during future storm seasons, is a constructive outcome for all stakeholders.”

Suarez-Resnick countered that Citizens’ depopulation efforts have been effective, with the corporation’s overall policy count now a third of what it was three years ago, thanks to recent litigation reforms and improvements in the Florida insurance market. Many agents are now adept at finding alternative insurers, including surplus lines carriers, to take on Citizens’ commercial policies.

As of January this year, Citizens reported 6,180 commercial and commercial residential policies in force, a 43% decrease from the previous year.

“This clearinghouse might have been a good idea four years ago, but not now,” Suarez-Resnick stated.

Although commercial policies are fewer in number than personal lines, they can still be worth millions of dollars, making them highly sought after by brokers and carriers alike. Citizens reported nearly $200 million in premium for commercial policies last month.

Not all Florida agents and brokers oppose the bill. Some believe that if the language is adjusted to ensure only the largest and healthiest surplus carriers can participate, it could help address coverage challenges for properties struggling to find insurance. Matt Mercier, national practice leader for CBIZ Insurance Services, emphasized the importance of stringent requirements.

The bill stipulates that surplus insurers in the commercial clearinghouse must have a financial strength rating of “A-” or better and a financial size category of A-VII, as determined by the AM Best financial rating firm. Mercier argued that the requirement should be at least an A-VIII or even an A-XII rating to better protect policyholders from potential failures of surplus carriers, which would not be covered by the Florida Insurance Guaranty Association.

“The distinction between an A-VII and an A-XII insurer is not merely technical; it reflects a substantial difference in policyholders’ surplus and capital strength,” Mercier explained in an email. “An A-XII insurer typically maintains approximately 10 to 20 times the surplus of an A-VII insurer.”

As the debate continues, concerns regarding Gruters’ exchange bill are gaining momentum, especially after it initially sparked little discussion during the first month of the 2026 legislative session. Many Florida insurance agents have expressed frustration with Citizens’ personal lines clearinghouse technical issues, and they are wary of introducing another potentially problematic platform.

Yaworsky’s remarks during the Senate committee hearing surprised many and seem to have strengthened opposition to the bill. He acknowledged that while the depopulation of Citizens is a commendable goal, SB 1028 could negatively impact brokers, agents, and insureds.

“If a policyholder has a relationship with a broker, that relationship could be severed under the clearinghouse proposal,” Yaworsky warned. “The broker-administrator-vendor that is ultimately hired by Citizens for this service essentially becomes the broker on both ends of the transaction. That is a concerning provision for any insurance regulator from the consumer perspective.”

Topics
Trends
Agencies
Florida
Commercial Lines