LETTER: Insurance companies not making big profits

Editor:

In a recent letter to the editor the writer urges people to vote for a candidate from District 75 who would "fight hard for lower insurance rates." Yes, insurance premiums in Florida are high.

However, the writer implied that insurance companies reap immense profits from Florida's trillion-dollar insurance business. Unfortunately, the comments do not match the facts.

First, Florida does not have a trillion-dollar property and casualty (P/C) insurance market. In fact, the total P/C premiums for all of the United States, its territories and Canada is $960 billion in direct written premiums.

Second, insurers are not reaping immense profits. For 2023 data from the AM Best rating agency shows that the property and casualty insurance industry posted a $21.2 billion net underwriting loss. State Farm alone posted a net loss of $6.3 billion in 2023, driven largely by a "significant increase" in catastrophe claims by homeowner policyholders.

Third, if the insurance market in Florida is profitable why have so many insurance companies been liquidated or have left the state?

The candidate in question may try to fight hard to lower insurance premiums, however the financial reality will be a steep hill to climb.

Paul Maloney

Venice