At the Florida Chamber Annual Insurance Summit last week, state Chief Financial Officer (CFO) Jimmy Patronis announced the formation and deployment of two new squads to fight property insurance fraud. These specialized units are dedicated to tackling the rising tide of property insurance fraud in Florida, a key factor contributing to the state’s escalating insurance premiums.
New Fraud-Fighting Squads Deployed in Central Florida
The new squads, part of the CFO’s Division of Investigative and Forensic Services (DIFS), are stationed in Tampa and Orlando but have statewide jurisdiction to investigate significant cases of property insurance fraud. The units are made up of 13 personnel, including 10 law enforcement detectives, and work closely with federal, state, and local partners. The squads will focus on high-impact cases, such as organized schemes to defraud, contractor fraud, inflated claims, and fraudulent damage claims related to water and roofing.
“Since I took office in 2017, our fraud unit has made more than 4,500 fraud and arson-related arrests, leading to over $173 million in court-ordered restitution,” Patronis said. “These new squads are another step in protecting Florida consumers and curbing rising insurance rates.”
A Coordinated Effort to Tackle Insurance Fraud
Insurance fraud, particularly related to property insurance, has been a major issue in Florida, exacerbated by fraudulent contractors, inflated damage claims, and post-disaster scams. The creation of these new squads aims to address these problems directly by bringing together resources from law enforcement, the Statewide Prosecutors Office, state attorneys, and the insurance industry. This task force approach enhances coordination and maximizes the impact of fraud investigations.
Patronis emphasized the importance of collaboration, noting, “While my teams put in a tremendous amount of time and effort to hold fraudsters accountable, we cannot do it alone.”
Legislative Proposal to Encourage Home Resiliency and Lower Premiums
In addition to the new squads, Patronis introduced a legislative proposal designed to help Floridians protect their homes and lower insurance costs. The Residential Resiliency Tax Relief plan provides a tax exemption for retrofit improvements, such as impact-resistant doors, windows, and roof securements. By encouraging homeowners to invest in storm-resilient measures, the proposal aims to reduce storm damage, ultimately lowering insurance premiums across the state.
“This tax exemption allows Floridians to spend money on improvements while keeping more money in their pockets and lowering their insurance premiums,” said Patronis.
Addressing the Root Causes of Rising Insurance Costs
Insurance rates in Florida have been steadily rising, driven in part by a surge in fraudulent claims. By deploying these fraud-fighting squads and implementing legislative solutions, the state aims to address the root causes of these rising costs. Patronis’ approach underscores the critical link between fraud prevention and affordable insurance coverage for Florida residents.
As the squads begin their work, Florida’s insurance industry and consumers alike will be watching to see the impact on fraud reduction and its effect on the state’s insurance market.
Looking Ahead
With fraud-fighting efforts ramping up and new legislation in the pipeline, Florida is taking proactive steps to protect both its insurance market and consumers. The success of these initiatives could serve as a model for other states facing similar challenges, as Florida continues to be on the front lines of the national insurance conversation.