Sadly the Cat fund is just another instrument demonstrating the lack of leadership and knowledge provided by the Florida legislature for the past 19 years. Florida can’t get it right. South Carolina, North Carolina, California and Hawaii faced catastrophic exposures and overcame it, but not Florida. The Cat fund is merely another symptom resulting from a lack of Insurance property reform. If you care about Florida as much as I do, you will pick up the phone and speak to your State Representatives and Senators to push property insurance deregulation and motivate insurance carriers to participate in this challenged property market again. This will decompress the heavy reinsurance burden that the State created for the past 19 years that could ultimately bankrupt the State if a major hurricane were to hit it.
I truly wonder how the Florida Legislature feels now after taking a hard stand against property insurance carriers in Florida for the past 10 years. The “lower premiums or else” approach or threatening companies with class action suits have driven these carriers out of the market. Florida legislature really showed them! They created a business model by utilizing their own company called Citizens to sell property insurance to Florida homeowners at a discounted price knowing damn well each policy written would land them deeper into insolvency. On the surface, the business model was designed for more affordable rates; however, it became a politician election ticket instead. Sure you saved a few dollars in the beginning but look at today’s Citizens Property insurance corporation rates. And today everyone is getting a wake-up call from the Cat fund saying, “Hey this is not working”.
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Sadly the Cat fund is just another instrument demonstrating the lack of leadership and knowledge provided by the Florida legislature for the past 19 years. Florida can’t get it right. South Carolina, North Carolina, California and Hawaii faced catastrophic exposures and overcame it, but not Florida. The Cat fund is merely another symptom resulting from a lack of Insurance property reform. If you care about Florida as much as I do, you will pick up the phone and speak to your State Representatives and Senators to push property insurance deregulation and motivate insurance carriers to participate in this challenged property market again. This will decompress the heavy reinsurance burden that the State created for the past 19 years that could ultimately bankrupt the State if a major hurricane were to hit it.
I truly wonder how the Florida Legislature feels now after taking a hard stand against property insurance carriers in Florida for the past 10 years. The “lower premiums or else” approach or threatening companies with class action suits have driven these carriers out of the market. Florida legislature really showed them! They created a business model by utilizing their own company called Citizens to sell property insurance to Florida homeowners at a discounted price knowing damn well each policy written would land them deeper into insolvency. On the surface, the business model was designed for more affordable rates; however, it became a politician election ticket instead. Sure you saved a few dollars in the beginning but look at today’s Citizens Property insurance corporation rates. And today everyone is getting a wake-up call from the Cat fund saying, “Hey this is not working”.