The $1.8 Billion Cover-Up: Florida Insurance Companies Funneled Profits to Affiliates While OIR Regulators Hid the Truth

The curtain just got pulled back on Florida’s insurance company scandal and it's not pretty for Florida’s leadership. For years, Florida’s insurance regulators presented a carefully curated version of events. But like the moment Dorothy pulls back the curtain to reveal the Wizard of Oz, the truth is finally being exposed—and it’s nothing like what we were told.  

This week, testimony before the Florida House Insurance & Banking Subcommittee confirmed what many consumer advocates have long suspected: key information about insurer profits and financial dealings was hidden from lawmakers and the public in 2022 during one of the most consequential periods of insurance reform in Florida’s history.

The facts are clear. In 2022, the Florida Office of Insurance Regulation (OIR) paid $150,000 to commission an in-depth report to investigate the complex financial transactions between insurers and their affiliated companies. The goal? To determine whether these affiliate arrangements — including MGAs (Managing General Agents), TPAs (Third Party Administrators), and reinsurers — were being used to shift profits and mask the true financial health of insurers operating in Florida.

Jan Moenck, a certified forensic accountant with Risk & Regulatory Consulting, authored the report. Her firm was hired by OIR to conduct the analysis. And this week, under oath, she told lawmakers the truth: the report was not a “draft” in the traditional sense — it was done. It was complete. It was paid for in full. She even followed up several times with OIR but never received a single request for changes or clarification.

Instead of being shared with legislators who were actively shaping major insurance legislation in Tallahassee, the report was shelved.

Why This Matters

In 2022 while Florida homeowners were losing their insurance policies, watching premiums skyrocket, and facing insurers exiting the market or going insolvent — a professional analysis indicating hundreds of millions of dollars in affiliate transactions and shareholder distributions was buried.

It wasn’t an oversight. It was a choice.

The Tampa Bay Times first  broke the story after obtaining the report through a public records request. A recent article by the Florida Phoenix underscores the gravity of this situation. The article reveals that from 2017 to 2020, Florida property insurers transferred over $1.8 billion to affiliates — all while crying poor and lobbying for sweeping legislative reforms that have made it harder for policyholders to hold insurers accountable.

This isn’t just regulatory negligence. It’s a betrayal of public trust.

Who Was in Charge?

Former Insurance Commissioner David Altmaier was the head of OIR at the time. He left his position in 2022 — not long after the reforms passed — and is now employed as a lobbyist representing insurance industry interests.

Altmaier previously testified that the report was just a draft and not ready for public release. But Moenck’s testimony directly contradicts that narrative.

Lawmakers are understandably frustrated. As Rep. Dianne Hart stated during the hearing, “What is being revealed basically says they lied to us.”

The timing and silence surrounding this report raise serious questions about whether Florida’s top insurance regulator was truly working for consumers — or for the industry he now represents.

What Happens Next?

House Speaker Daniel Perez has now authorized an independent investigation. Forensic accountants will be hired to thoroughly examine how insurers and their affiliates have been moving money — and whether these transactions were used to pad profits at the expense of Florida policyholders.

In our legal practice, we’ve seen firsthand how these industry tactics impact real people. When insurers deny valid claims or delay payments under the guise of financial stress — all while profits quietly flow to related entities — it’s not just unethical. It’s unjust.

Policyholders deserve better. Floridians deserve transparency. And regulators must be held to account when they fail to protect the public interest.

Final Thoughts

This isn’t about politics. It’s about principles.

When insurance companies are permitted to operate behind a wall of complexity and regulators look the other way — or worse, aid and abet by not releasing reports to Florida lawmakers — the consequences fall squarely on the shoulders of homeowners and business owners just trying to protect what they’ve worked hard to build.

The Florida Legislature is finally stepping in where regulators failed. We’ll be watching closely — and continuing to stand up for policyholders across the state.

If you have questions about how these developments could affect your insurance claim or rights under your policy, we’re here to help.