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Thursday, December 29th, 2022

Why Republicans are coughing up billions of dollars to save Florida’s insurance market

Author:     Jake Bittle
Source:     Grist
Publication Date:     19 December 2022
 Link: Why Republicans are coughing up billions of dollars to save Florida’s insurance market
Stephan:   I have been telling you for at least a decade now to watch what happens with the insurance industry as climate change develops, and look particularly at Florida. Pay attention there will come a point where the industry in its traditional form of business will collapse, and the Republicans will try to get the taxpayers to cover the costs. Why? Because if the insurance industry collapses there is be a million trillion-dollar real estate market crash, and all the uber-rich with their coastal mansions will take an enormous hit, and ordinary folk will abandon the state. Well, as this article spells out exactly what I predicted is beginning to play out.

In the three months since Hurricane Ian struck Florida, the state’s fragile property insurance market has been teetering on the brink of collapse. The historic storm caused over $50 billion in damage, more than any disaster in U.S. history other than Hurricane Katrina. It also dealt a body blow to an industry that was already struggling to stay standing: Several insurance companies had already collapsed this year even before the hurricane, and major funders are now poised to abandon those that remain.

In recognition of this crisis, Florida Governor Ron DeSantis convened the state’s Republican-controlled legislature last week for a special session devoted to stabilizing the insurance market. In a matter of days, lawmakers passed a package of bills aimed at doing so. The package includes bills that will cut down on litigation and fraudulent claims that raise costs for insurers, but it also provides insurance companies with a $1 billion public subsidy to help them stay afloat next year. That’s on top of another $2 billion the legislature rolled out earlier this […]

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2 Comments

  1. Rev. Dean on Thursday, December 29, 2022 at 2:09 pm

    I used to live in Florida for 17 years, and would say that almost all of the people living there are older folks who have migrated from up north, mostly from New York.

    • Rev. Dean on Thursday, December 29, 2022 at 2:11 pm

      I meant to say half of the people, not all.