Florida insurers claimed to be losing money following hurricanes Irma and Michael, justifying rate increases. However, a 2022 study revealed that parent companies and affiliates made billions. Executives diverted funds, distributed dividends, and violated regulations, potentially impacting claims coverage. The report, kept from lawmakers, prompted calls for more oversight. Affiliates charging fees up to 34% of premiums have raised concerns about fairness and financial practices. Industry executives argue against accusations of money shifting, while regulators push for legislative reforms for more transparency. The findings highlight the complex financial structures within Florida’s insurance market and the need for stricter regulations.
https://www.tampabay.com/news/florida-politics/2025/02/22/florida-insurance-profits-desantis-regulation-investors-crisis/