By Alexis Franz, JMI Intern & FSU Senior, Risk Management/Insurance & Economics
In case you missed it last month, the American Consumer Institute released Job One for the Next Cabinet: Rebuilding Florida’s Property Insurance Market. In the past few years there have been many different opinions presented about the current unstable status of the property and casualty (P & C) market, but this article’s take on the situation brings some fresh ideas to the table.The author, John Rollins, is an insurance policy expert and a former senior actuary for Citizens. Unlike some other papers written on the subject, instead of simply pointing out the problems, Rollins focuses on the role that the Cabinet can play in fixing the market, and therefore, the important role that voting Floridians can play when they choose their next Attorney General, Chief Financial Officer, and Commissioner of Agriculture on November 2nd.Citing the $715 million that taxpayers had to pay to bail out Citizens in 2006, this article makes the point that issues with Citizens and the P & C market are everyone’s concern, especially if you are a tax-paying citizen. Policyholders (and there are over one million of them) have even more at stake and are being charged inadequate rates that increase the amount of unfunded risk taken by Citizens–something that could mean state-wide problems if a storm were to hit.For more information on this complex problem, visit JMI’s Property Insurance issues page to read Institute articles and white papers on the topic.