Large national insurers often create Florida-specific subsidiaries (colloquially called "pups"). These entities insulate the parent company's assets; if the Florida "pup" goes bankrupt, the parent company remains untouched.
A 2022 report uncovered that while companies were claiming financial ruin and hiking premiums, they were simultaneously transferring hundreds of millions of dollars to out-of-state affiliates and shareholders. insurance florida
The "deep story" of insurance in Florida is a complex saga of a market teetering on collapse, driven by a perfect storm of natural disasters, legal exploitation, and corporate maneuvers. Once a hallmark of the American dream, homeownership in the Sunshine State has become a high-stakes financial gamble. The "deep story" of insurance in Florida is
Florida insurers rely heavily on "reinsurance" (insurance for insurance companies). As global catastrophe risks rise, these costs have skyrocketed, with some reinsurance layers doubling in price. Corporate Shell Games & Whistleblowers As global catastrophe risks rise, these costs have
Florida's insurance market is uniquely volatile, characterized by the highest premiums in the nation—averaging over , which is triple the national average.
Despite accounting for only 9% of U.S. property insurance claims, Florida is the source of 79% of the country's home insurance lawsuits . This disparity was largely driven by "Assignment of Benefits" (AOB) abuse, where contractors and law firms would encourage homeowners to file suits to inflate repair costs.