We here in Florida just got treated to two years of hearing how Auto Insurance Rates and Premiums are so high and out of control due to rampant fraud and attorney fee abuse by Plaintiff’s lawyers. Insurers, including the top ones in the market, all claimed that they were paying out $1.07 in losses for every $1 dollar in premiums they took in.
Well, here is the awesome thing about public companies – they have to file reports to their shareholders. I got my hands on State Farm’s annual report for 2011. It shows that State Farm made a $1 Billion (Yes – billion) profit in the 2011. Things must really be bad, huh?
How does this affect you, and why should you care? This report is confirmation, proof positive, that there is no rampant fraud and abuse crisis causing major auto insurers to loose money. A $1 billion dollar profit definitely proves the insurance industry flat out lied to our Legislature about their losses and profitability.
Knowledge Equals Power in Orlando Auto Accident Cases
The next time the insurance industry goes running to Tallahassee, here is to hoping our Legislators will look at their bottom line, i.e., a $1 billion dollar profit, and call foul. And you should call foul too, by voting wisely this August and November.