The following press release is provided by Amerisure Insurance / FSPA / Insurance by Ken Brown.
The partnership between Amerisure Insurance, FSPA and Insurance by Ken Brown has spanned multiple decades. Beyond Ken Brown authoring the first pool pop insurance form, or founding of the scholarship program, or the annual financial donations to FSPA, there has been a very unique group dividend in place for many years where members have the opportunity to earn a return on their insurance premiums.
To be eligible for the dividend, a member of the FSPA must be insured with Amerisure insurance through Insurance by Ken Brown. The dividend is not guaranteed, and it is based on the underwriting profitability of the group as a whole.
For the year 2022, the underwriting profit resulted in a dividend distribution of $500,000 (which will be distributed soon). The percentage of the dividend to a particular member depends on two factors:
1) The underwriting profitability of the business as it stands on its own
2) The percentage of premium paid by a member to the whole (more premium paid = larger dividend)
Some of the 2022 individual dividends exceed $10,000!
Over the many years, millions of dollars have been returned to members through the dividend program, although it’s been a few years since the group was last eligible. Compromised underwriting profits, caused and created primarily by an unprecedented volume of lawsuits arising from both auto accidents and construction defect claims, have taken a toll. Floridians have experienced claims in both size and scope over the past several years which they have never seen before.
The increase in litigation experienced in Florida has been a wrecking ball for the insurance industry and has hugely impacted all of their rates and premiums. The losses are easier to accept when there’s a large investment return for the carriers, but that has not been the case in recent years.
State citizens are hopeful that the new Florida 2023 Tort Reform Law will help with the litigation moving forward. However, that will undoubtedly take years as there are 100,000+ recently filed lawsuits throughout the Florida court system right now under the “old” rules and laws.
FSPA is very excited about this generous distribution and would like to express their congratulations to all the participants! They are hopeful for another distribution in 2024!
Checks should be ready for distribution later this summer.