In a concerning development, some industry experts are sounding the alarm over a concerted assault on the insurance sector in Florida, where thousands of lawsuits have forced numerous companies out of business.
Thousands of lawsuits have plagued Florida insurance companies forcing many out of business.
Two researchers claim some national law firms invested millions of dollars to help file the suits.
In fact, the matter is so serious it’s now reached the halls of Congress.
According to 4Warn, a data analytics company, certain law firms have spent millions directing online searches to controlled websites. This is to entice individuals to file legal actions against their insurance providers.
Insurance Industry Under Overt Attack
The CEO of Demotech, Joseph Petrelli, said law firms have conducted assaults against the insurance industry for several years now.
“I think it’s more of an overt attack, and it used to be a convert attack,” Petrelli said.
He explained that law firms are deploying significant financial resources to manipulate internet searches and steer individuals toward sites they control, all with the aim of instigating lawsuits.
Hockey Stick Growth in Lawsuits
Petrelli’s company Demotech assesses insurance companies. Its first discovered many of those insurance companies, like UPC, were suddenly drowning in lawsuits.
“The number of new litigations had hockey stick growth,” Petrelli stated.
When asked what he believes contributed to the demise of UPC, he said the company was litigated to death along with six other insurance companies that went under in 2021 for the same reason.
Petrelli noted that this spike in litigation was a catalyst for their investigative efforts.
However, Co-founder of 4Warn, Todd Kozikowski, an astrophysicist and data scientist, revealed a digital trail that hinted at a larger story.
His findings showed an increase in insurance claims even before natural disasters, such as Hurricane Ian in 2022.
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“Before there was wind in the state to fly a kite, we saw where they were setting up websites and setting up playbooks and bidding on keywords sometimes, $50, $60, $70 a click to get somebody to file an insurance claim before the storm even hit,” Kozikowski revealed.
In a letter to Congress, Petrelli expressed his concerns, emphasizing that many insurance companies are now at significant risk.
Southwest Florida Insurance Agent Doug Nellans, who owns The Insurancenter, voiced his apprehension about the impact on the statewide insurance market.
“This undermines the already fragile recovery effort in the Florida insurance marketplace,” Nellans said.
Although the potential fallout impacts the industry itself, consumer confidence is also at risk.
Kozikowski stressed the importance of cautious online behavior, urging individuals to scrutinize information before clicking, as falling victim to orchestrated schemes could have widespread consequences.
