Welcome to a different chapter within the ever-entertaining saga of Florida insurance coverage regulation—the place the sudden is predicted, and actuality typically reads like satire. The newest? Florida’s insurance coverage regulators are serving subpoenas on a critic who dared to highlight obtrusive points within the insurance coverage trade. Sure, you learn that proper. As an alternative of addressing the trade’s woes, they’ve determined to play a recreation of “blame the messenger.”
The Tampa Bay Instances article written by Lawrence Mower, Florida Regulators Problem Subpoenas to Insurance coverage Business Critic, uncovered this latest tactic and had me double-checking my inbox to see if my workplace had been subpoenaed, too. Right here’s the gist:
Weiss Scores, a Palm Seashore Gardens-based monetary scores company, not too long ago raised the alarm that Florida’s insurance coverage market is teetering on collapse. They backed it up with knowledge displaying insurers denying claims left and proper and shifting cash out of the state. However as an alternative of digging into these troubling developments, Florida regulators determined to demand Weiss’s emails, texts, and documentation. It’s like investigating the weatherman for predicting rain whereas ignoring the floodwaters rising round you.
The Actual Numbers: Why Weiss’s Report Hit a Nerve
Let’s check out the stats Weiss highlighted: Numbers that might make even essentially the most seasoned regulator get away in hives:
- Farm Bureau Property & Casualty: Denying 70.5% of claims (Gold medalists in declare denials!)
- American Bankers Insurance coverage Firm: 51.2% denial fee (Silver medalists)
- Residents Property Insurance coverage: 50.4% denial fee (Bronze)
- General development: Denial charges climbing from 24.9% in 2004 to 37.4% in 2023
These numbers aren’t simply alarming—they’re a flashing neon signal that claims, “One thing could be very, very flawed right here.” To be truthful, there could nicely be legitimate explanations for a few of these elevated statistics, as I not too long ago acknowledged in A Frank Dialogue About Florida’s Insurance coverage Disaster, Together with Admissions About Why Present Claims Statistics Do Not Point out the Sky Is Falling.
Regulators’ Response: The Nice Subpoena Scavenger Hunt
As an alternative of investigating the insurers for these eye-popping denial charges, the regulators demanded Weiss produce:
- Emails about Florida’s insurance coverage market
- Texts associated to say denials
- Proof of insurers on the “brink of collapse”
- Proof of funds diverted to shareholders
- Documentation of insurers’ “In the event you don’t prefer it, sue us” technique
Frankly, this method looks like attempting to repair a flat tire by yelling on the GPS.
What Regulators Ought to Be Investigating
Expensive Commissioner Yaworsky and Deputy Commissioner Parker, I would like you to achieve defending policyholders with nice protection at reasonably priced costs and make sure insurers are totally and promptly paying claims. Whereas I like the creativity in your subpoenas, right here’s a suggestion: How about aiming your investigative prowess on the insurers themselves? Right here’s a starter record:
- Inner memos on “loss ratio administration” methods
- Govt bonus plans tied to say denials
- Coaching manuals on “artistic” declare denials
- Correspondence about shifting reserves out of state
- Administration agreements and hidden earnings streams for executives
Oh, and let’s not neglect these PowerPoint shows on “The right way to Pay Much less and Deny Extra.”
A Modest Proposal
Somewhat than specializing in the particular person holding the flashlight, why not look at the darkish corners of the trade? Think about:
- Subpoenaing claims knowledge and government communications
- Investigating reserve transfers and unexplained denials
- Exploring why denied claims typically get mysteriously paid after lawsuits
- Asking Residents why a 50.4% denial fee is suitable
- Defending and in search of whistleblowers who expose unethical claims practices
These steps won’t be as thrilling as subpoenaing an trade critic, however they’d definitely do extra to revive belief in Florida’s insurance coverage market.
Closing Ideas
Dr. Weiss summarized it completely: Florida’s insurance coverage trade isn’t getting ready to a collapse—it’s already there within the minds of the general public. Floridians are shedding religion of their bought insurance coverage product, not due to dire predictions, however due to lived experiences: excessive deductibles, poor protection advantages, infinite delays, denied claims, and an oversight system that’s extra centered on optics than outcomes.
Commissioner Yaworsky, in the event you’d like assist drafting subpoenas to the oldsters truly chargeable for this mess, my workplace is at your service—professional bono. Think about it a goodwill gesture towards fixing a system that’s failing tens of millions within the minds of most Floridians. There must be a better attain for public enter and debate as a result of the general public is shedding religion of their capacity to personal property as a result of considerably pricey insurance coverage that doesn’t pay after a loss.
P.S. To any impartial adjusters who’ve spoken out concerning the wrongdoings of Florida’s claims trade and are studying this weblog: Save your emails, memos, and notes. If regulators proceed down this path, you could possibly be subsequent. And in the event that they ask you in your childhood diary, possibly it’s time to name a lawyer.
Thought For The Day
“Nobody loves the messenger who brings unhealthy information.”
—Sophocles
