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Florida home insurance bailout comes up short

Going forward, state lawmakers must prioritize forward-looking solutions to forestall future crises before they begin.

By Jonathan Levin | December 20, 2022 at 12:10 AM
The underlying risks themselves — intensifying hurricanes, rising seas and climate change more broadly — aren’t going away, and Florida remains woefully unprepared to deal with the costs. (Credit: Credit: SeanPavonePhoto/Adobe Stock) The underlying risks themselves — intensifying hurricanes, rising seas and climate change more broadly — aren’t going away, and Florida remains woefully unprepared to deal with the costs. (Credit: Credit: SeanPavonePhoto/Adobe Stock)

(Bloomberg Opinion) — Florida’s Republican-controlled legislature has finally taken meaningful steps toward addressing the state’s runaway property insurance crisis. Unfortunately, it waited until the market was on the brink of collapse when good options were impossible to come by. Going forward, the legislature must prioritize forward-looking solutions to forestall future crises before they begin.

The Sunshine State, of course, is where expensive real estate bumps up against ever-intensifying hurricanes, the looming threat of rising seas and the most notoriously litigious insurance market in the country. It’s also a market full of smaller regional insurers with business models that rely on access to reinsurance, effectively insurance for insurers. The rising cost of those policies has been at least one cause of the latest turbulence.

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