In the aftermath, after Florida has sifted through its own rubble and has had to walk in its own defecation for a couple of years, I will inevitably run into an out-of-work and homeless insurance executive, who will tell me, "We never thought it would be possible to end like this." At that point in time, I will rip out his/her carotid with my own teeth and, once he/she has stopped writhing and flailing, I will savor the taste of his/her raw intestines. All of this while I will refuse to become bitter.

(state politicians) Nancy Detert and Doug Holder: ARE YOU READING THIS? YOU SET US UP FOR THIS? ARE YOU INSANE?

My current insurance company has begun to quietly exit Florida insurance because ~1% of policyholders in two counties filed sinkhole claims, which strained it's finances.

I hate to think how many people in this state wouldn't get any funds after any hurricane because all these fly-by-night insurance companies that write policies can't afford to pay all those polices out, even with reinsurance.

Guess we'll be getting our own bailout.

Is it just me or does the dude in the picture look homicidal?

looks like the insurance lobby has performed it's work very well.

Funk Brothers:Florida sucks except for Disney World and anything south of Fort Pierce and east the Florida Turnpike.

Fixed.

Insurers have said that free-market, private systems cannot insure in Florida without re-insurance protection from the Government against catastrophic losses.

So having admitted that private insurers need public insurance to function-- what is the POSSIBLE reason for having a private insurance industry offering policies in Florida (aside from paying profits into the pockets of investors)?

Governments get money from taxation which is tied to economic activity (which is why governments MAKE money providing flood insurance to multi-million dollar hotels built on sand bars) a socialized state-run insurance company in Florida could make vast wealth for the state's taxpayers but people can't admit that because it would be "socialized" and "government-run".

THERE ARE EXCEPTIONS TO GENERAL RULES!!!!!

cirby:
Florida passed some laws that made it harder for more-reputable insurance companies to make profits, so they left the state.

No. Reputable Insurance companies left the state because they realized that if a single hurricane had gone 50 miles south, the exposure to claims would have been 3 times national industry reserves.

Let the bears pay the bear tax!

There is no such thing as hurricane insurance.

So these insurance companies are buying reinsurance from sister companies. Did Florida's regulators learn nothing from AIG? That is EXACTLY what they did to screw themselves.

For those who don't know, reinsurance is supposed to be spread throughout a number of outside companies. It is basically an insurance policy against default of the company and spreads the risk of failure around. All expensive policies are split up this way, for example in P&C a skyscraper's policy would similarly be split up so if that tornado or hurricane comes through, it won't be one company paying $1,000,000,000 (or however much) but ten companies each paying $100,000,000.

Instead, these companies are retaining all of that risk themselves. I can't believe that Florida allows this, particularly for carriers that are entirely within hurricane-prone areas. This goes against everything I know to be best practices in the insurance business.

Florida, the ONLY way to keep the insurance industry from self-destructing is through regulation, regulation, regulation. Tighten things up real quick or just have the state revoke all licenses and assume direct control. That would be a better answer than half-assed regulations. Right now they are handing their local companies a license for malfeasance. Even legit companies have trouble keeping out of trouble in a normal market, much less the virtual DIY environment in America's wang.

Tommy Moo: Yet another reason we should dissolve states and have only a single, unified set of federal standards, regulations, and tax codes. This would prevent wealthy people from evading taxes and prevent companies from evading regulations by moving to certain states.



I don't think you've thought your cunning plan all the way through.

2theruns:
Citizens bankrupts the state...

Yes, you are brilliant. Non-profit property insurance "bankrupts the state" because high-value, high-risk properties are all destroyed every year and therefore pay no property taxes.

Governments make money on TAXES -- if you only measure INSURANCE PREMIUMS you aren't measuring cost/return of state-provided insurance!