Now is the time to strengthen Florida’s commercial insurance market

There is no question that after the total overhaul of insurance industry reforms the Florida Legislature completed over the past several years, along with the leadership of Gov. Ron DeSantis in calling a Special Session of the state Legislature to drive down prices for consumers, Florida property owners are in a dramatically better position than a decade ago.

Now, almost 12 years ago, however, there was one part of the insurance reforms signed into law by then-Gov. Rick Scott that went unimplemented. That 2014 law gave state-backed Citizens Property Insurance Corporation — the insurer of last resort in Florida — the ability to set up a system that would keep commercial insurance policies out of the overloaded, taxpayer-backed Citizens Corp. But, there was no interest from the private market at the time to write coverage for these commercial policies.

The residential market Clearinghouse was established by Citizens, but the Clearinghouse for commercial insurance policies never formed.

Fast forward to 2026, and we have a vibrant insurance market that is attracting more and more private-sector insurance capital willing to write commercial insurance policies and increase choice. Simple economics teaches us that whenever we have more choice, we have more ability to compete, and therefore we can drive down prices. That is why I am proud to be the sponsor for SB 1028 (alongside Rep. Mike Redondo, who has the House companion HB 943). This legislation will finally implement the Clearinghouse for commercial insurance policies that can be supported in the private market, reducing Citizens’ exposure to bloat and potential taxpayer bailouts during a catastrophic event.

Here is the quick 1-2-3 of how the Commercial Property Clearinghouse process for Citizens would work under this proposed legislation.

(Before I start, I want to emphasize that because this legislation is only for commercial properties, it has no effect on car insurance, homeowners’ insurance, or condo unit insurance policies.)

The Commercial Clearinghouse process at Citizens is as follows: 

First, the Commercial Insurance Clearinghouse serves as a one-stop shop where private-market insurers (including reputable surplus lines carriers with strong financial ratings) can review and offer coverage to businesses currently insured by Citizens or applying for new policies. This opens the door to private-market alternatives that might not have been easily accessible before.

Second, this Clearinghouse for commercial insurance policies protects consumer choice.

No business is ever required to accept an offer from the clearinghouse. Policyholders can freely compare options and decide what works best for them: they can stay with Citizens, accept a private offer, or even look elsewhere entirely. This preserves full freedom and puts the final decision in the hands of the business owner (policyholder) — not the government or any one carrier.

Lastly, the Clearinghouse is a transparent process at Citizens.

Applications and renewals would be submitted through the clearinghouse, allowing approved private insurers to present competitive offers efficiently. This encourages a healthy marketplace where quality options rise to the top, all while ensuring Citizens remains available as a reliable safety net.

I am so proud of the work we have done to improve Florida’s insurance market. I remember 12 years ago when the “experts” said this could never be done. Insurance companies were fleeing the state, and the natural disasters were coming one after another.

We are planning a SECOND clearinghouse at Citizens Insurance to help keep state taxpayers safe from burdensome bailouts and to help drive rates down for commercial policyholders by increasing competition.

I believe this legislation will be a game-changer for increasing competition and consumer choice in Florida’s commercial insurance market. And, when commercial insurance costs fall, those savings are passed on to consumers who patronize commercial properties — like shopping malls, dental offices, movie theaters, etc.

After all, we are known as the Free State of Florida because we believe that competition in the free market always works best.

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Sen. Joe Gruters represents Sarasota County in the Florida Senate, where he focuses on insurance reform, fiscal policy and strengthening Florida’s economy.