Florida Insurers Funneled Billions to Affiliates While Claiming Losses, Study Reveals

A newly uncovered report shows insurers shifted funds to affiliates and shareholders, raising premiums and risking insolvency, while lawmakers were kept in the dark.

• A 2022 study, recently made public, found Florida insurers diverted billions to affiliate companies and paid $680 million in dividends while reporting financial losses after Hurricanes Irma and Michael.
• From 2017 to 2019, insurers showed a net loss of $432 million, but their affiliates recorded $1.8 billion in profits, raising concerns about regulatory oversight and financial practices.
• The report revealed that 19 of 30 insurers analyzed paid affiliate fees deemed 'not fair and reasonable,' weakening their ability to pay claims and violating state regulations.
• Despite the findings, the report was not shared with lawmakers during legislative sessions addressing Florida's insurance crisis, and no follow-up investigation has been conducted since its release.
• State regulators are now pushing for stricter oversight of affiliate transactions, including clearer definitions of 'fair and reasonable' fees, as Florida's insurance market shows signs of stabilization following recent reforms.

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