Insurers reported losses as affiliates profited

A long-secret 2022 report by a consultant to the state Office of Insurance Regulation found Florida insurers were paying substantial fees to affiliated companies that often made more money than the insurer itself. The consultant determined the fees in many cases exceeded what was presumed to be "fair and reasonable," the standard under Florida law. Here is a selection of the consultants'  findings.Income shown is for 2017-19.

✔  Fair and reasonable ✖  Not fair —  Undetermined

"Undetermined" indicates the consultant did not have enough information to assess whether fees were fair and reasonable. According to the consultant's report, American Platinum Group included American Platinum Property and Casualty Insurance and Universal Property & Casualty Insurance; FedNat Insurance Group included FedNat Insurance, Maison Insurance and Monarch National Insurance; Florida Family Insurance Group included Florida Family Insurance and Florida Family Home Insurance; Florida Peninsula Group included Florida Peninsula Insurance and Edison Insurance; Safe Harbor Insurance and US Coastal Property & Casualty Insurance were connected companies with overlapping affiliates; and Tower Hill Insurance Group included Tower Hill Preferred, Tower Hill Prime and Tower Hill Signature.
Chart: Orlando Sentinel/South Florida Sun SentinelSource: Report to OIR from Risk & Regulatory Consulting, LLC; insurers financial reports