Florida Insurance Investigation: Hidden Profits and Rising Premiums

An investigation is currently underway in Florida to determine if insurance companies concealed profits while declaring bankruptcy.

The issue has recently gained the attention of state lawmakers.

The focus is whether homeowners faced steep premium increases due to some Florida insurance companies citing losses caused by hurricanes, while simultaneously engaging in practices that may have hidden profits.

This controversy is now shaking up the state’s insurance market.

An insurance agent described the matter as a hot topic within the industry.

“It’s understandable that both sides will want to uncover the truth and find real answers,” the agent stated.

A 2022 report alleges that some companies justified raising premiums on policyholders by claiming losses, all while distributing $680 million in dividends to shareholders and shifting billions to affiliates.

A representative from the Insurance Information Institute dismissed the report as lacking validity.

“There is no evidence of wrongdoing by insurers in this case,” the representative stated.

However, when questioned about whether shareholders received substantial dividends, he admitted he could not confirm that.

“I don’t have access to the financial statements of every company operating in Florida,” he explained.

A representative from the American Policy Association believes the situation warrants an investigation, emphasizing that any company running a transparent operation should have nothing to fear.

Yet, he suspects this may not be the case here.

“Senior citizens on fixed incomes and working-class families struggling to make ends meet are having their money siphoned off to line the pockets of wealthy corporate executives,” the representative remarked.

A state lawmaker has stated that the Florida Insurance and Banking Subcommittee will thoroughly investigate the matter.

“The people of Florida should have the opportunity to look into this and make their own judgments,” the lawmaker said.

There is no set timeline for the investigation’s completion. The subcommittee members will have the authority to issue subpoenas, interview witnesses under oath, and bring in expert testimony.