Industry Insight: Infinity Auto to Refund $46M to Florida Drivers

Infinity Auto Agrees to Return Excess Profits to Florida Policyholders

Infinity Auto Insurance Company has agreed to return approximately $46.2 million to eligible Florida automobile policyholders after the Florida Office of Insurance Regulation determined that the insurer realized profits exceeding the threshold permitted by state law. The regulatory action provides a timely reminder that Florida’s insurance laws regulate not only rates and claim practices, but also the amount of underwriting profit an automobile insurer may retain over a defined period.

According to an October 22 order issued by Florida Insurance Commissioner Mike Yaworsky, Infinity reported its financial results to the Office of Insurance Regulation in June. After reviewing the filing, the agency determined that Infinity owed applicable policyholders $46,246,666 for the combined 2023, 2024, and 2025 calendar-accident years.

Florida’s Excess-Profit Framework

Florida law requires automobile insurers to periodically calculate whether their underwriting results exceed a statutory benchmark. Under the formula quoted in the regulatory reporting, an excessive profit exists when an insurer’s combined underwriting gain for the three most recent calendar-accident years exceeds its anticipated underwriting profit plus five percent of earned premiums for those years.

This mechanism is distinct from an individual claim dispute. The regulator is not finding that Infinity underpaid a particular collision, personal injury protection, or liability claim. Instead, the determination concerns the insurer’s overall underwriting results and requires money above the statutory threshold to be returned to eligible policyholders.

Infinity waived its right to an administrative hearing concerning the order. Its parent company, Kemper, stated that it will return approximately $46.2 million through premium credits and refunds. The company also connected the development to improving Florida market conditions and rate reductions following legislative changes.

How Policyholders May Receive Relief

The available reporting did not identify the total number of eligible policyholders or calculate an average payment. Policyholders therefore should not assume that every Infinity customer will receive the same amount—or that every person who has ever purchased an Infinity policy will qualify.

The method and amount of relief may depend on factors identified in the final distribution process, including the applicable policy period and the premium associated with the policy. Some eligible customers may receive a check, while others may receive a credit. The order anticipates that checks will be mailed within approximately two months of the announcement. Infinity also agreed to make efforts to locate policyholders when refund checks are returned as undeliverable.

Current and former policyholders should:

• Confirm that Infinity has their current mailing and contact information.
• Review account statements and renewal documents for any premium credit.
• Retain the refund notice, check stub, and relevant policy declarations.
• Be cautious of unsolicited communications requesting payment or banking credentials to release a refund.
• Contact the insurer or Florida regulators through verified channels if eligibility or payment information appears incorrect.

Broader Significance for Florida’s Insurance Market

The Infinity order follows a much larger excess-profit refund involving Progressive. According to the source report, Progressive was required in 2025 to return approximately $950 million affecting more than 2.7 million insureds, with a reported average refund of about $300. Those figures arose from a separate regulatory proceeding and should not be used to predict the amount of an Infinity refund.

The latest order also arrives amid announcements of automobile and homeowners insurance rate reductions by several carriers. Rate reductions, premium refunds, and claim payments are separate issues, however. A market-wide improvement or an excess-profit refund does not change an insurer’s obligation to investigate and adjust an individual covered loss fairly under the policy and Florida law.

Impact on Public Adjusters and Claims Professionals

Although public adjusters generally concentrate on first-party property claims rather than automobile premium regulation, the order remains relevant to insurance professionals. It demonstrates the importance of distinguishing among premium issues, underwriting performance, and claim-specific benefits. Professionals communicating with policyholders should avoid presenting an excess-profit refund as additional claim proceeds or as evidence that a separate loss was mishandled.

The development also reinforces the value of preserving complete policy records. Declarations, endorsements, payment histories, cancellation notices, and address changes may help establish whether a consumer maintained an eligible policy during the relevant period. If a refund dispute arises, contemporaneous documents will usually be more useful than an estimate based on general market reporting.

Practical Takeaways

• Eligibility is not yet fully described publicly. Policyholders should wait for an official notice or seek confirmation directly from Infinity.
• Refunds may take different forms. Relief may be delivered through a mailed payment or premium credit.
• Contact information matters. Former customers should ensure that the insurer can reach them.
• Refunds and claims are legally distinct. Accepting an excess-profit payment ordinarily should not be treated as resolving an unrelated property or automobile claim, but consumers should review the accompanying documentation.
• Watch for fraud. A legitimate refund program should not require an advance fee.

How Louis Law Group Can Help

Louis Law Group represents Florida policyholders in disputes involving residential and commercial property insurance claims. While the Infinity order concerns automobile underwriting profits rather than a specific property loss, policyholders facing an underpayment, denial, delay, or coverage dispute may benefit from a legal review of their policy and claim file. To discuss a Florida property insurance matter, contact Louis Law Group at (833) 657-4812.

Source: Insurance Journal - Infinity Auto Agrees to Refund $46M in Excess Profits to Florida Policyholders