Three years have passed since the 2004 and 2005 hurricane seasons punished Florida with eight powerful hurricanes that caused in excess of $30 billion in damages, most of that covered by private insurance companies operating in the Sunshine State at the time.
Fallout from those two horrific seasons continues to pollute public policy decisions governing insurance companies, although the origins of many of the decisions regarding the way the State of Florida copes with hurricanes can be traced back to Hurricane Andrew in 1992.
In the wake of Andrew, companies found it increasingly difficult to gain approval of rate increases that actuaries insisted were necessary to continue to take on the risk in Florida, especially in light of the fact that property values soared in the 1990s combined with new development that continued to add to the overall risk insurers were expected to absorb. The day of reckoning was put off again and again as relatively few hurricanes blew ashore in the twelve years since Andrew.
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