Florida Lawmakers Investigate Insurance Companies’ Accounting Practices
Florida lawmakers are initiating a comprehensive investigation into the state’s home insurance crisis, raising concerns about potential “accounting tricks” used by insurance companies to conceal profits. The investigation follows reports that insurers may have transferred substantial sums of money to their affiliate companies while simultaneously claiming financial losses.
House Speaker Daniel Perez announced the investigation during the legislative session, highlighting the significance of property insurance for Florida residents. The House Insurance and Banking Subcommittee plans to hold hearings to closely examine the financial claims of insurance companies. This decision was prompted by findings from a 2022 document, initially reported by the Tampa Bay Times, which revealed that insurers had moved significant funds to affiliated entities while reporting substantial financial losses. The Office of Insurance Regulation funded the study, which covered the period from 2017 to 2019.
Speaker Perez stated that the report suggests some insurance companies may have employed “accounting tricks to hide substantial profits while telling us they were in crisis.”
In response to these reports, the American Property Casualty Insurance Association issued a statement asserting that insurance companies experienced losses due to storms and legal system abuse. The association claimed that recent news reports on the matter are “very misleading”
Speaker Perez affirmed that the subcommittee will utilize all available resources to thoroughly investigate the matter, which include issuing subpoenas, placing witnesses under oath, and engaging external experts. The House Insurance and Banking Subcommittee initiated its first meeting of the session on Wednesday and announced plans for special meetings dedicated to this inquiry.
Lawmakers are looking into the financial practices of insurance companies.
