STORAGE NAME: h1097c.BUC
DATE: 3/27/2025
1
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1097
TITLE: Insurance Research
SPONSOR(S): Canady
COMPANION BILL: SB 114 (Trumbull)
LINKED BILLS: None
RELATED BILLS: None
Committee References
Insurance & Banking
16 Y, 0 N
Budget
26 Y, 0 N, As CS
Commerce
SUMMARY
Effect of the Bill:
The bill renames the existing “Florida Catastrophic Storm Risk Management Center” to the “Florida Center for
Excellence in Insurance and Risk Management” (Center) located at Florida State University (FSU). The bill expands
the purpose, duties, and interests of the Center. The bill requires the Center to collaborate with the Office of
Insurance Regulation (OIR) on a variety of tasks.
The bill transfers all of the duties, powers, functions, funds, existing contracts, and other issues associated with or
related to the public hurricane loss production model from Florida International University to FSU.
Fiscal or Economic Impact:
Implementation of the bill is subject to funding in the General Appropriations Act.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill renames Florida State University’s Florida Catastrophic Storm Risk Management Center to the Florida
Center for Excellence in Insurance and Risk Management (Center). The bill expands the scope of the Center from
catastrophic storms to broadening its purpose to insurance and risk management.
The bill changes the purpose of the Center:
to develop, conduct, and evaluate accurate and timely research issues related to Florida’s insurance market
and risk management;
to assist the Legislature in developing and evaluating evidence-based policy options and making
recommendations related to insurance and risk management in Florida;
to identify emerging issues in the insurance market; and
to provide insight regarding accessibility and affordability of insurance products.
The bill does not change the Center’s purpose to assist in identifying and developing education and research grant
funding opportunities among higher education institution in this state and the private sector.
The bill aligns the Center’s purpose consistent with this change. The Center is to conduct research responsive to
inquiries from the President of the Senate and the Speaker of the House of Representatives. The bill permits the
Center to conduct research upon the request of Office of Insurance Regulation (OIR). (Section 1).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
The Center and OIR
Conducting Research
The bill requires the Center to cooperate with the OIR on conducting research. The bill provides that areas of
research may include:
storm forecasting and loss modeling;
Florida’s insurance-related consumer protections;
insurer claims-handling and adjudication practices in this state in comparison with insurer practices in
other states;
cost factors in the reinsurance, catastrophe bond, and insurance-linked securities markets;
the Florida Hurricane Catastrophe Fund;
the effectiveness of the My Safe Florida Home Program;
risk management strategies, particularly for catastrophic risk; or
health insurance, life insurance, workers' compensation, motor vehicle insurance, or any other type of
insurance sold within this state. (Section 1).
Producing Report
The bill requires the Center to collaborate with OIR to create and to produce a report examining the property
insurance market in Florida by forecasting what the market will look like in 1 year, 5 years, 10 years, and 20 years.
The report must include recommendations on improving the availability and affordability of property insurance,
and this state’s preparation and response to catastrophic events. (Section 1).
The bill requires the Center to publish the initial report on or before January 1, 2026, and update the report at least
every 2 years. (Section 1).
Developing a Program to Encourage Students to Work for Public Sector
The bill requires the Center to collaborate with OIR and the Actuarial Science Program of the Florida State
University (FSU) Department of Mathematics to develop a program to encourage actuarial science students to
work in the public sector in the field of risk management insurance. (Section 1).
The Florida Public Hurricane Loss Model
The bill mandates OIR to contract with the Center to manage the public hurricane loss model, and the Center to
work with other entities and universities, including Florida International University (FIU), to develop the public
model. The bill removes FIU as the lead institution for developing and operating the public model, and replaces
parts in the statutes to reflect FSU’s Center instead of FIU. (Section 2).
The bill transfers
1 all powers, duties, functions, records, offices, personnel, associated administrative support
positions, property, pending issues, existing contracts, administrative authority, administrative rules, and
unexpended balances of appropriations, allocations, and any other funds relating to the public hurricane loss
projection model from FIU to FSU. (Section 3).
Annual Report on Hurricane Loss data and Associated Exposure Data
The bill requires the FSU Center instead of FIU to annually publish a report summarizing the hurricane loss data
and associated exposure data connected
2 to and collected from residential property insurers and licensed rating
and advisory organizations. The bill directs the FSU Center to annually submit such report on or before October 1st
to the Governor, the President of the Senate, and the Speaker of the House of Representatives. (Section 4).
1
The bill states that such transfer is a type two transfer, as defined in s. 20.06(2), F.S. A type two transfer allows the state to
move a program and functions of an existing agency to another agency.
2
S. 627.06292(2) defines “loss data and associated exposure data” as the type, age, wind mitigation features, and location of
each property insured; the amount and type of coverage written on each of those properties; the amount, date, and type of
damage paid for by the insurer on each property; and the amount of any reserves held by an insurer for future payments or
expenses on damages associated with the date or dates of occurrence of hurricanes. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The operational costs of the Hurricane Loss Model at Florida State University will be subject to funding by the
General Appropriations Act (GAA).
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Office of Insurance Regulation
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers, and other risk bearing
entities in Florida.
3 The Financial Services Commission (FSC), composed of the Governor, the Attorney General, the
Chief Financial Officer, and the Commissioner of Agriculture, serves as agency head of the OIR for purposes of
rulemaking. Further, the FSC appoints the OIR commissioner.
As part of their regulatory oversight, the OIR may suspend or revoke an insurer’s certificate of authority under
certain conditions.
4 The OIR is responsible for examining the affairs, transactions, accounts, records, and assets of
each insurer that holds a certificate of authority to transact insurance business in Florida.
5 As part of the
examination process, all persons being examined must make available to the OIR the accounts, records, documents,
files, information, assets, and matters in their possession or control that relate to the subject of the examination.
6
The OIR is also authorized to conduct market conduct examinations to determine compliance with applicable
provisions of the Insurance Code.
7
Florida Catastrophic Storm Risk Management Center
In 2007, the Florida Legislature created the Florida Catastrophic Storm Management Center. The Florida
Catastrophic Storm Management Center is housed within the Department of Risk Management in the College of
Business located at FSU.
8 The Florida Catastrophic Storm Management Center’s primary focus is to support the
state’s ability to prepare for, respond to, and recover from catastrophic storms. The support the Florida
Catastrophic Storm Management Center provides includes:
9
Coordinating and disseminating research efforts that are expected to have an immediate impact on policy
and practices related to catastrophic storm preparedness.
Coordinating and disseminating information related to catastrophic storm risk management, including but
not limited to research and information that benefits business, consumers and public policy makers.
Facilitating Florida’s preparedness and responsiveness to catastrophic storms and collaborating with other
public and private institutions.
Creating and promoting studies that enhance the educational options available to risk management and
insurance students.
Publishing and disseminating findings primarily related to risk management.
Organizing and sponsoring conferences, symposiums, and workshops to educate consumers and
policymakers.
The Florida Public Hurricane Loss Model
3 S. 20.121(3)(a), F.S.
4 S. 624.418, F.S.
5 S. 624.316(1)(a), F.S.
6 S. 624.318(2), F.S.
7 The Code is comprised of chs. 624-632, 634-636, 641, 642, 648, and 651, F.S. See S. 624.3161, F.S.
8
S. 1004.647, F.S.
9
Id. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
In 2000, the Florida Legislature authorized the creation of a public hurricane loss projection model (public model)
and the OIR contracted with FIU to develop the model in 2001.
10 In March 2006 the public model was activated and
in August 2007 it was first found acceptable by the Florida Commission on Hurricane Loss Projection Methodology.
The public model was built to assess hurricane risk and predict annual expected insured residential losses in
Florida for an insurance company, zip code, county, or for the entire state. The OIR uses the public model as an
independent tool to facilitate its review of the reasonableness of property insurance rates proposed by insurers.
Without the public model, the OIR’s basis for rate determinations would be each insurer’s own selected private
model and corresponding loss data and the OIR would not have a way to corroborate the accuracy of this data. The
FIU is the lead institution for developing and operating the public model, but it collaborates with several other
public and private Florida universities (including FSU, the Florida Institute of Technology, the University of Florida,
and the University of Miami), University of Missouri-Kansas City, and the U.S. National Oceanic and Atmospheric
Administration.
11
Annual Report on Hurricane Loss data and Associated Exposure Data
Currently, FIU is required to annually publish a report summarizing the hurricane loss data and associated
exposure data connected to and collected from residential property insurers and licensed rating and advisory
organizations. FIU must annually submit such report on or before October 1
st to the Governor, the President of the
Senate, and the Speaker of the House of Representatives. The report must include a summary of the data supplied
by residential property insurers and licensed rating and advisory organizations from September 1 of the prior year
to August 31
st of the current year, and must include certain information.
12
FIU International Hurricane Research Center
FIU has a specific center that focuses on minimizing hurricane damage and loss of life. The International Hurricane
Center studies include:
13
household mitigation and evacuation;
storm hazard and vulnerability mapping, long-term community recovery; and
economic loss modeling.
Previously, the National Science Foundation (NSF), the Federal Emergency Agency (FEMA), OIR, and the Florida
Division of Emergency Management (DEM) have assisted with these studies.
14 The International Hurricane Center
has four research laboratories
15 focused on different aspects of hurricane damage and resiliency.
OTHER RESOURCES:
FIU Hurricane Research Center
Florida Public Hurricane Loss Model
10
Summary information on the Florida Public Hurricane Loss Projection Model obtained from Office of Program Policy
Analysis and Government Accountability. Report No. 11-25: Steps Could Be Taken to Reduce the Public Hurricane Loss
Projection Model’s Reliance on State Funding (December 2011). Available at:
http://www.oppaga.state.fl.us/MonitorDocs/Reports/pdf/1125rpt.pdf.
11
What Is the FPHLM? Florida Public Hurricane Loss Model, Florida International University International Hurricane Research
Center, https://fphlm.cs.fiu.edu/ (last visited Mar. 6, 2025).
12
S. 627.06292(3), F.S.
13
History, International Hurricane Research Center, Florida International University, www.ihrc.fiu.edu/about/history/ (last
visited Mar. 7, 2025).
14
Id.
15
The four research laboratories include the laboratory for coastal research, laboratory for insurance, financial and economic
research, laboratory for social science research, and laboratory for wind engineering research. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Insurance & Banking
Subcommittee
16 Y, 0 N 3/13/2025 Lloyd Herrera
Budget Committee 26 Y, 0 N, As CS 3/27/2025 Pridgeon Perez
THE CHANGES ADOPTED BY THE
COMMITTEE:
Removed the appropriation of $5 million recurring funds and $1.5
million nonrecurring funds from the General Revenue Fund.
Commerce Committee
-------------------------------------------------------------------------------------------------------------------------------------
THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
-------------------------------------------------------------------------------------------------------------------------------------