Florida Insurers Sent Billions to Affiliates While Claiming Losses: Report

[BumRushDaShow]

Source: Newsweek

Published Feb 23, 2025 at 4:58 PM EST


As Florida homeowners recover from years of skyrocketing insurance premiums and coverage cuts, a new study report obtained by the Miami Herald and Tampa Bay Times revealed on Saturday that Florida insurers sent billions to affiliates while claiming to be losing money in the wake of hurricanes. Newsweek has reached out to Florida's Office of Insurance Regulation via email for comment on Sunday.

Why It Matters

Insurance has been a major issue in the Sunshine State in recent years, as hurricanes and storms have had a devastating impact. This comes as several major insurers cut coverage across Florida or withdrew from the state entirely in the past few years, citing increasing costs and growing catastrophe exposure. A combination of excessive litigation, widespread claim fraud and the growing risk of more frequent and severe natural disasters contributed to create a perfect storm that plunged the state's property insurance sector into a crisis.

What To Know

According to a 2022 study report, that has never been made public and was released to the Miami Herald and Tampa Bay Times after a two-year public records request, revealed that Florida's homeowners insurance market companies claimed financial ruin following Hurricanes Irma and Michael.

However, the report suggests those hardships were overstated as their parent companies and affiliates were raking in billions. Between 2017 and 2019, as the state's insurance market began unraveling in the wake of the back-to-back hurricanes, insurers justified steep rate hikes by citing mounting losses due to the storms. The report reveals how insurers paid out $680 million in dividends to shareholders while simultaneously funneling billions to affiliated companies.

Read more: https://www.newsweek.com/florida-insurers-sent-billions-affiliates-claiming-hurricane-losses-2035039