A new bill filed in the Florida Senate by Don Gaetz is making waves by proposing that insurance companies disclose the financial relationships of their executives and related entities. The legislation would require a report detailing the compensation of executives, including salaries, stock options, bonuses, stock buybacks, and other taxable payments. It also demands transparency about related companies—subsidiaries, management firms, captive vendors, and reinsurers—that share executives, directors, or significant ownership with the insurer.
To some, this may sound like a groundbreaking demand for transparency. In reality, it’s nothing new. Publicly traded companies already have to disclose this type of information under SEC regulations. If you run a major corporation in America and take home a hefty paycheck, the public can already see what you make. Shareholders get a full accounting of compensation structures, stock options, and financial relationships that might influence corporate decision-making. The insurance industry, one of the most heavily regulated sectors in the country, should be no different.
The real question is: Why would any insurance executive be afraid to disclose their financial ties and compensation? If the money they receive is legitimate, justified, and in line with industry norms, they should have no problem making it public. If anything, executives should welcome the opportunity to demonstrate that their pay is fair and that they are reinvesting in their companies, strengthening surplus, and ensuring policyholders are protected.
But that’s the issue, isn’t it? I often talk about the need for people to discuss the “elephant in the room” when having a crucial conversation. This bill threatens to expose how some executives aren’t just collecting a salary but are siphoning money out of the insurance company through sweetheart deals with related entities. If an insurer is struggling, if policyholders are seeing premium hikes, if regulators are approving rate increases under the guise of financial necessity—shouldn’t the public know whether millions are being funneled into executives’ pockets through opaque management fees, vendor contracts, or offshore reinsurance arrangements? Shouldn’t we, and even the insurer’s reinsurers, be told about the side adjustment company owned by the executive’s wife that tacks on a little extra doing almost nothing?
This isn’t about attacking insurance companies. It’s about accountability. It’s about making sure insurers actually prioritize financial stability and policyholder protection over executive enrichment. It’s about stopping the kind of self-dealing that weakens companies, leads to insolvencies, and leaves policyholders holding the bag when an insurer collapses. Don Gaetz should be congratulated for demanding this type of transparency because it breeds honest business practices.
If you’re a responsible executive running an insurance company the right way, this bill should be nothing more than another regulatory formality. If you’re worried about it, that says more about how you run your company than it does about the proposed law.
I mentioned Don Gaetz’s concern for policyholder protection and transparency 16 years ago when he took on Citizens Property Insurance in Does Citizens Management Think of Itself as a Private Insurer Rather Than a Governmental Entity?
Our legislature should follow the lead of State Senator Don Gaetz and correct this. It is simply wrong for Citizens claims managers to have no accountability. It already has an unfair advantage in the marketplace with private insurers on the rate structures, it should not have an economic incentive to break the law and promote abusive claims practices against its own customers.
Don Gaetz is back! Maybe Don, rather than his son, Matt Gaetz, should be in the discussion about who should be the next Florida governor. Don Gaetz has always supported policyholders and called for honest and transparent claims handling. It is good to see a Florida Republican leader standing up to the very well-heeled insurance industry and lobby.
Thought For The Day
“When you see corruption being rewarded and honesty becoming a self-sacrifice, you may know that your society is doomed.”
—Ayn Rand
