Transferring risk is good for Citizens
Claiming that the purchase of private reinsurance is a “gift” to offshore reinsurers that somehow harms Florida consumers is wrong (“Foes see ‘gift’ to reinsurers in plan for state storm fund.”)
The exposure held by the Florida Hurricane Catastrophe Fund — which threatens to stick everyday Floridians, nonprofits, houses of worship and small businesses with billions of dollars in “hurricane taxes” — is the real problem.
Transferring risk away from taxpayers and onto the private market would mitigate the problem, help to shore up Florida’s finances and flood the state with outside capital — rather than debt after a hurricane. Other states with a government-run insurance fund purchase coverage to protect their taxpayers.
It’s time that the most disaster-prone state did the same.
