Florida Insurers Hid Profits Amid Skyrocketing Rates, Report Shows
A 2022 report, which was released to the Miami Herald and Tampa Bay Times only after a two-year public records request, exposes how Florida’s homeowners insurance companies claimed financial ruin following storms yet those hardships were severely overstated as their parent companies and affiliates raked in billions.
The previously unpublished March 2022 report shows that between 2017 and 2019, the insurers in the study showed a net loss of about $432 million, while their affiliate companies showed a net income of $1.8 billion. At the same time, executives reportedly distributed about $680 million in dividends to shareholders.
For years, Florida policyholders have faced steep increases in property insurance premiums, with insurers blaming rising litigation costs and hurricanes. Now, lawmakers want to know if insurers have been shifting money within their corporate structures to make their primary insurance businesses appear less profitable than they actually are. To that end, the Florida House of Representatives is launching a probe to determine whether property insurers masked their profits while simultaneously justifying rate hikes and cutting coverage.
The 2022 report serves as further proof Florida policyholders cannot trust their insurance companies since they do not have their best interests in mind. Insurers operate as for-profit businesses. Their financial success depends on paying out as little as possible on valid claims while appearing to serve policyholders. The newly-released report highlights how insurance companies are motivated by profits and not by doing what is right for those who suffer harm.
Insurance companies try to contact accident victims immediately after accidents to make nominal offers in exchange for releases from unsuspecting people. Insurers use tactics to avoid paying what injury victims are owed, pressuring people to accept a quick settlement. However, if you are still being treated by a doctor, you cannot be sure how much your case is actually worth.
Insurance companies intentionally downplay injuries to undervalue damages. As illustrated by the 2022 homeowners insurance report, insurers have one goal: minimize payouts and maximize profits. Protect yourself by talking with a lawyer before you sign a settlement agreement or other forms to verify the amount offered is the actual value of your claim. Once you accept an offer, you generally waive your right to pursue additional compensation later.
If you’re filing a Florida personal injury claim, you’ll likely face delays, denials, and underpayment. This has nothing to do with your case’s merit or legitimacy; rather, insurers are incentivized to pay out as little as possible. Do not let an insurance company take advantage of you. Florida insurance companies must act in good faith when investigating and settling claims. If an insurance company acts in bad faith, you may have a claim separate from your personal injury claim.
Our experienced Florida personal injury attorneys can make all the difference by countering the insurance industry’s underhanded tactics and fighting to get you the compensation you deserve. We ensure clients are fairly compensated, and prevent insurers from devaluing claims. Click here to schedule a free, no obligation consultation.
