What Is “Self-Dealing” In The Insurance Industry?

Self-dealing is a very serious allegation in the insurance industry. If your organization has been accused of this misconduct, the first step is to gain a solid understanding of what “self-dealing” actually means. How might an insurance representative engage in this misconduct? What are the potential consequences, and can a Tampa insurance defense lawyer help you avoid these penalties?

Self-Dealing Allegations Are Common in Florida’s Insurance Industry 

In Florida, allegations involving self-dealing are relatively common across the insurance industry. In April of 2025, Insurance Business reported that the lack of transparency in this industry had become concerning. The report also cited numerous investigations that uncovered “widespread” self-dealing by insurers. Some say that this practice, which involves draining money out of insurance companies through affiliates, has caused premiums to increase.

Another report by Insurance Journal in May of 2025 highlighted an incident involving alleged self-dealing by a major insurance company’s CEP. The CEO is accused of charging $400,000 for questionable IT services, and paying her own company this sum. The report implies that this is an example of “self-dealing” in the insurance world.

The Basics of Self-Dealing 

From funneling money out of companies to charging inflated fees for questionable IT services, there are many examples of self-dealing to consider. However, this practice is at its core a “breach of fiduciary duty.”

All insurers are fiduciaries, which means they owe their policyholders a legal duty of care. They must attempt to act in the best interests of their policyholders. Not only that, but insurers must avoid doing anything to benefit themselves at the cost of their policyholders. This could lead to a breach of fiduciary duty lawsuit, which is a common legal issue for insurers in Florida.

While self-dealing can affect policyholders, these individuals may not be the ones suing insurance companies. Instead, you might face a self-dealing lawsuit from anyone who owns significant stock in the company. You might also face this type of lawsuit from another company that does business with your insurance organization.

Florida has passed many laws favoring insurance companies in recent years. This means that regulators might be more willing to “look the other way” regarding allegations of supposed self-dealing. However, these loose regulations were intended to encourage the recovery of the insurance industry in Florida. The industry is now recovering, so regulators might be more confident about cracking down on self-dealing. As a result, legal assistance may be more important than ever.

Can a Tampa Insurance Defense Lawyer Help With Self-Dealing Allegations? 

If you or your organization has been accused of self-dealing, you should speak with an experienced insurance defense attorney in Tampa as soon as possible. Self-dealing can lead to various legal issues, including lawsuits involving “breach of fiduciary duty.” To learn more about potential defense strategies, contact HD Law Partners at your earliest convenience.

Sources:

 insurancebusinessmag.com/us/news/breaking-news/affiliate-oversight-failures-highlight-need-for-structural-reform-in-florida-legal-expert-532128.aspx

insurancejournal.com/news/southeast/2025/05/29/825398.htm