Property insurance companies may have hidden huge profits while justifying massive increases in their clients' premiums, reveals a 2022 report, which has recently come to light.
This document was obtained through a public records request, and according to NBC NewsThese companies are said to have diverted billions of dollars to affiliated companies, distributing multimillion-dollar dividends while simultaneously declaring significant financial losses.
These practices may have contributed significantly to the state's insurance market crisis, which is why Florida House Speaker Daniel Perez has ordered a thorough investigation into the matter.
The document shows that between 2017 and 2019, the companies recorded net losses of around $432 million, while their affiliated companies reported net income of $1.800 billion. This does not include the distribution of approximately $680 million to shareholders.
However, the worst thing is that the Florida Office of Insurance Regulation report was never officially published, which has generated great controversy among legislators and consumers, reported Infobae citing original information from Fox 13 Tampa Bay.
The document reveals that insurers would have increased premiums to compensate for losses suffered during natural disasters such as hurricanes. Irma y MichaelHowever, this measure is marred by the diversion of funds to related companies and shareholders, which has weakened insurers financially, leaving them unable to meet the claims of policyholders.
As a result of the exposure of what appears to be a major fraud, some experts and lawmakers are demanding answers, while industry representatives are denying the allegations.
It should be remembered that the crisis in the insurance market in the State has greatly affected consumers, due to the substantial increase in their payments.
Furthermore, the practice of diverting funds to affiliated companies has left insurance companies in a very bad position, and some of these companies have already gone bankrupt. All this chaos in the insurance market has influenced the reduction of competition and has forced many owners to turn to the state insurer of last resort.
