Two years ago, I stood at The Florida Capitol in Tallahassee, fighting against a proposed law I knew would hurt everyday Floridians. I wasn’t alone – doctors, consumer advocates, and fellow attorneys joined me, all united in our concern. We warned that the legislation would undermine victims’ rights to fair financial and medical recovery after accidents and disasters. It was a powerful experience to stand alongside medical professionals and legal colleagues, each of us sharing real stories of patients and policyholders who could be left stranded by the changes. Our message was simple: don’t tip the scales of justice in favor of insurance companies at the expense of injured Floridians.
A United Front for Fair Recovery
I remember the intensity in Tallahassee. White-coat doctors spoke about patients struggling to afford care after being hurt by others’ negligence. Legal professionals like myself detailed cases where Floridians relied on current laws to get their medical bills paid and livelihoods restored. We stood shoulder-to-shoulder, making the case that the proposed changes were not just “technical fixes” – they were life-altering rules that would close the courthouse doors to people in need. Our goal was to put Floridians first, ensuring they could continue to receive the care and compensation they deserved without unfair hurdles.
Yet, despite our testimonies and heartfelt pleas, it was clear the insurance industry lobbyists in the room had a strong influence. They painted a dire picture of an “out-of-control” legal system, claiming lawsuits and fraud were driving insurers to financial ruin. The atmosphere felt stacked against us – a swift push for a predetermined outcome. We saw firsthand a legislative process that lacked transparency and fairness, where industry narratives carried more weight than facts or personal stories. It was disheartening, but we hoped truth would eventually prevail.
Unmasking the Insurance Industry’s False Narrative
Fast forward to today, and the truth has finally come to light. A recent Tampa Bay Times investigation confirmed what we suspected all along: insurance companies misrepresented their financial situation to get that law passed. They cried poor to lawmakers and the public, but behind closed doors it was a different story.
- Hidden Profits: While insurers were telling Floridians they were losing money after hurricanes Irma and Michael, their parent companies and affiliates were actually making billions of dollars. In other words, the insurance crisis wasn’t as it seemed.
- Payouts to Investors: A state-commissioned study (kept under wraps until now) revealed that during the supposed “crisis,” insurance executives paid out $680 million in dividends to shareholders and funneled billions more into sister companies.
- Rules Violated: These same executives siphoned so much cash out of their insurance companies that many firms violated state regulations meant to ensure solvency. This shell game left some insurers financially weakened — putting them at risk of not having enough money to pay out claims.
- Lawmakers Kept in the Dark: Perhaps most shocking, lawmakers never saw this report when crafting the legislation. Instead, regulators and industry lobbyists pushed a narrative focusing only on “lawsuit abuse,” without disclosing evidence of insurers’ own financial mismanagement. The then-insurance commissioner and others zeroed in on making it harder to sue insurers rather than addressing these internal issues.
These findings are a major validation of what we argued in Tallahassee. An independent watchdog called the evidence a “smoking gun” proving that companies were “crying poverty in order to raise premiums or justify insolvency”. In reality, insurers were shifting money from their left pocket to their right pocket and crying poverty while the right pocket bulged. In plain terms: the crisis was largely self-inflicted. The industry was blaming lawsuits and consumers to cover up greedy financial maneuvers that padded their profits.
Floridians at Risk: Why Policyholder Rights Matter
Unfortunately, the misled legislation passed, and Floridians are now feeling the impact. The law that was supposed to “reform” the system ended up tilting the playing field in favor of insurers. It became harder for injured people and policyholders to get fair compensation and hold insurance companies accountable. Here’s what that means on the ground:
- If you’re hurt in a car accident or have a home damaged by a storm, you might face new obstacles to recover your losses. Shorter deadlines, capped damages, and procedural hurdles are now limiting legitimate claims.
- Fewer attorneys are able to take on policyholders’ cases because the law stripped away provisions that required insurers to pay your legal fees when they’re in the wrong. Victims must sometimes pay out of pocket to fight wealthy insurance companies, which deters many from ever filing a case.
- Medical bills from an accident can pile up, but the new rules might only allow recovery of amounts based on insurance rates, not the actual bills you incur. Doctors warned lawmakers that this would leave injured patients with unpaid bills and limit access to treatment. Sadly, those warnings went unheeded.
The result? Innocent Floridians are paying the price. Families who faithfully paid their premiums are now finding that when they need their insurer to cover a loss or an injury, the deck is stacked against them. I’ve spoken with clients who feel cheated twice – first by the insurer, and then by a system that makes it harder to seek justice. This is exactly what we fought to prevent.
A Call for Transparency and Accountability
Seeing the truth come out now is vindicating, but it’s also infuriating. It didn’t have to be this way. If there had been full transparency in the legislative process, lawmakers might have scrutinized the insurers’ claims more closely and crafted a fairer law. Instead, a critical state study was buried, public debate was rushed, and Floridians’ voices were drowned out by industry talking points. This lack of openness and fairness in lawmaking must change.
The good news is there are finally signs of accountability on the horizon. Florida’s House Speaker has now ordered a formal investigation into the insurance companies’ conduct. This move, which has earned bipartisan applause, comes after the revelation that insurers “hid profits while claiming financial instability.” In fact, a legislative committee has been empowered to subpoena insurance executives and dig into the truth – including that 3-year-old report showing over $1 billion moved to parent companies while insurers insisted they were “unprofitable” in Florida. I commend this step. It’s a chance to shine a light on the backroom dealings that put profits over people.
But investigations alone are not enough. We need to restore balance and fairness for policyholders. That means revisiting the laws that were passed under false pretenses and making it right:
- Protect Policyholder Rights: Reinstate legal protections that give individuals a fair chance to dispute claim denials or lowball offers. No one should go bankrupt or forego medical treatment because the law makes it too hard to get what they’re owed.
- Hold Insurers Accountable: Enforce stricter oversight on insurance finances. Regulators should ensure companies can’t drain funds through affiliates or dividends to dodge responsibility. If an insurer misleads regulators or lawmakers, there must be consequences.
- Transparency in Lawmaking: Demand that any future insurance-related legislation be based on complete data, not one-sided stories. Lawmakers should have all the facts – and the public should too. Had the 2022 study been disclosed, it could have completely changed the debate. Going forward, no important report should be hidden from our representatives.
As someone who took an oath to uphold justice, I believe our work is not done. I worked hard two years ago to defend Floridians, and I remain just as committed today. This isn’t about politics or partisanship; it’s about fairness and trust. Floridians buy insurance in good faith, expecting that a policy will protect them in their time of need. If insurance companies break that trust – and rig the system to avoid accountability – they must be called out and corrected.
Bottom line: We must put policyholders first. The recent revelations prove that we were fighting the right fight in Tallahassee. Now, with the truth on the record, it’s time to push for change that returns power to the people who faithfully pay their premiums. I urge my fellow Floridians, lawmakers, and regulators to join in demanding a fair and transparent insurance market. Together, we can ensure that no family is left in the lurch, and that justice prevails over corporate greed.
#FairInsurance #Accountability #FloridiansFirst #Transparency
