Florida Insurers: A Masquerade of Poverty?

An unreleased study reveals that while Florida insurers claimed losses after hurricanes Irma and Michael, their parent companies and affiliates raked in billions of dollars. The study found that insurers distributed $680 million in dividends to shareholders while diverting billions more to affiliates, leaving some insurers financially weakened and potentially unable to pay claims. Despite state lawmakers never seeing the report, its findings confirm long-held suspicions about Florida's insurance market: companies claim poverty to raise premiums or justify insolvency, citing litigation and fraud, while shifting money internally. Regulators are taking steps to increase oversight of affiliates, but some question whether these measures are sufficient to address the problem.