Note: This guest post was prepared by Kevin Connor for the American Policyholder Association.
For years, property insurance companies in Florida paid out excessive executive compensation packages and stock dividends, essentially transferring profits into insiders’ pockets instead of preparing for future years of adverse underwriting experiences as most insurers do.
Now these same companies are pointing to the cost of fraud and litigation as reasons for losses and rate increases which seem to be a strategy to divert attention away from the impact of mismanagement and corporate greed. Some continue to pay out generous cash dividends to shareholders even as they file for substantial rate hikes, stop writing policies in parts of the state, or look to withdraw from the Florida markets altogether.
Continue Reading Major Florida property insurers paid out excessive executive compensation packages, dividends for years