Worth understanding this whole argument applies only to local Florida-only insurers; the big national entities don't operate like this and also found Florida too expensive to operate in prior to the 2023 tort/insurance reforms.
> So executives create sister companies that charge the insurance company for basic services, such as claims handling, underwriting, accounting and issuing policies. (Large national insurers typically handle all of those services internally.)
This practice is pretty common in auto insurance. The company you wrote your policy with is usually broker and your ID car will list the actual Insurance Company. If you go through an independent agent you'll encounter 3 layers of abstraction where the agent writes business for multiple brokers who manage books of business for different insurance companies.
> So executives create sister companies that charge the insurance company for basic services, such as claims handling, underwriting, accounting and issuing policies. (Large national insurers typically handle all of those services internally.)