April 2, 2025 | JacobiJournal.com — Hurricane Irma Settlement: Florida’s Universal Property & Casualty Insurance Co. must pay a $4 million fine after a state investigation found the insurer submitted ineligible claims to Florida’s Hurricane Catastrophe Fund (Cat Fund). The settlement prevents Universal from collecting more than $30 million in disputed reimbursements tied to Hurricane Irma.
Investigation and Settlement
Florida Attorney General James Uthmeier announced the settlement on Tuesday, citing findings from a whistleblower lawsuit. Investigators discovered that Universal had backdated claims from Hurricane Irma in 2017 to increase reimbursements.
“Insurance fraud harms Floridians, and this case ensures that the Cat Fund only pays for legitimate storm-related losses,” Uthmeier said.
Universal, based in Fort Lauderdale, denied any wrongdoing. Company officials argued that the claims had gone through the Cat Fund’s standard review process over six years.
“The Cat Fund conducts a thorough commutation process, evaluating loss data to determine final settlements,” Universal stated. “This process applies to all insurers and led to a mutual agreement.”
Whistleblower Lawsuit and Legal Costs
A former Universal employee filed the whistleblower lawsuit in 2020, two years after leaving the company. Universal claimed the whistleblower misunderstood reporting procedures, leading to inaccurate allegations. The lawsuit, filed in Leon County, remains sealed. Florida’s Universal P&C Fined
Under the settlement terms, Universal must pay $6.5 million, which includes $2.4 million in attorney fees.
Universal’s Chief Strategy Officer, Arash Soleimani, framed the settlement as a mutual decision to dismiss the case and move forward.
Industry Reactions and Market Impact
Gina Wilson, the Cat Fund’s chief operating officer, did not comment on the settlement. However, industry insiders acknowledged that such claim adjustments are rare but not unheard of.
Universal, one of Florida’s largest property insurers, explained that post-hurricane claim assessments often evolve.
“Over time, insurers gain more information about losses,” Universal stated. “Some claims initially linked to hurricanes may later be classified as unrelated, while others previously omitted may be added.”
The company reassessed about 1% of its Hurricane Irma claims before and during the commutation process. The storm remains Universal’s largest single loss event, with total costs rising from an initial $450 million estimate to more than $2 billion.
Universal Moves Forward
With the case now closed, Universal’s CEO, Stephen Donaghy, emphasized the company’s commitment to Florida policyholders.
“We are pleased this review has concluded, and the state has dismissed the case,” Donaghy said. “As market reforms take effect, we look forward to providing more affordable home insurance options for consumers.”
Despite the settlement, Universal Insurance Holdings’ stock remained near a five-year high, showing minimal impact from the announcement.
For further details, see the Florida Attorney General’s Office announcement on insurance fraud enforcement.
FAQs: Hurricane Irma Insurance Fine
Why was Universal P&C fined over Hurricane Irma claims?
Universal was fined $4M after investigators found the insurer had backdated Hurricane Irma claims to inflate reimbursements from Florida’s Cat Fund.
How much did Hurricane Irma ultimately cost Universal P&C?
Hurricane Irma remains Universal’s largest loss event, with costs exceeding $2 billion, far above the initial $450 million estimate.
What role did the whistleblower lawsuit play in the Hurricane Irma settlement?
A former Universal employee filed the whistleblower lawsuit, alleging the company misreported Hurricane Irma claims, leading to the state’s investigation.
How does the Hurricane Irma case affect Florida homeowners today?
The settlement ensures the Cat Fund pays only for legitimate Hurricane Irma claims, helping stabilize the insurance market and protect policyholders.
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