An insurance company in Florida has agreed to return $30 million to the state’s hurricane catastrophe fund following allegations that it submitted numerous ineligible claims.

Universal Property & Casualty Insurance Company (UPCIC) reached a deal with Florida’s Attorney General this week following a year-long probe over allegations that it improperly backdated policies to secure higher reimbursements in the wake of Hurricane Irma in September 2017.

Why It Matters

The $30 million repayment is one of the largest clawbacks by the Florida Hurricane Catastrophe Fund (FHCF), which is funded by premiums paid by Florida property insurers and works to stabilize the state’s insurance market following hurricanes.

The case also underscores systemic vulnerabilities in Florida’s insurance oversight system, which has faced mounting pressure amid widespread policy cancellations and rising premiums following a series of devastating storms.

What To Know

On Tuesday, the Office of the Attorney General of Florida said in a statement that its investigation into UPCIC found “numerous unrelated claims” made by the company to FHCF.

“As a result, the company agreed not to seek reimbursement for those claims, lowering the FHCF payout from Hurricane Irma to UPCIC by more than $30 million,” it said.

UPCIC also agreed to pay more than “$4 million in fines and implement changes to its policies and procedures,” according to the statement.

The Attorney General’s office said it launched its investigation into UPCIC “following a whistleblower lawsuit filed in Leon County.” The goal of the investigation was to determine whether the company’s claims were in fact caused by Hurricane Irma.

In 2017, Hurricane Irma swept across Florida as one of the most powerful Atlantic storms on record, leaving behind a trail of devastation. Making landfall in the Florida Keys as a Category 4 storm, Irma brought winds exceeding 130 mph, widespread flooding and storm surges that overwhelmed coastal infrastructure.

The storm prompted mass evacuations and caused power outages affecting more than seven million customers across the state. Damage estimates in Florida reached about $50 billion, spanning residential, commercial and public infrastructure losses.

What People Are Saying

Florida Attorney General James Uthmeier said in a statement issued on Tuesday: “Our office secured the return of more than $30 million to the state’s hurricane fund from fraudulent insurance submission allegations following Hurricane Irma.

“As Floridians, we know the impact that hurricanes can have on our state and how important recovery efforts are in a storm’s aftermath in helping residents start to rebuild. This office is committed to a healthy and stable insurance market for Florida homeowners, meaning insurance companies must play by the rules.”

UPCIC’s chief executive officer Stephen Donaghy said in a statement shared with Newsweek: “We are pleased the review has come to a close and the state dismissed the case. We look forward to continuing to serve Floridians as market reforms are leading to more affordable home insurance options for consumers.”

What Happens Next

Officials say the returned funds will bolster the FHCF’s reserves ahead of the 2025 hurricane season, which forecasters warn could be particularly active.