From Florida Watchdog:

Christian R. Cámara, Florida director and a co-founder of  R Street Institute, a Washington, D.C. think tank, said homeowners might be able to get a better deal on insurance from the private market, especially because Citizens’ recently upped its rates. Since 2009, Citizens’ premiums have increased 43 percent.

The clearinghouse will make it easier for homeowners to find suitable insurance “because we didn’t have a system that could match policyholders with the private insurance market,” Cámara said.

But critics of the clearinghouse idea say insurance companies will pick the lowest-risk properties, leaving high-risk properties to the state-subsidized Citizens.

“The private companies won’t like to take the risky policies, but Citizens was founded to be the insurance company of last resort. So, I see it right for them to take the polices that no one wants.”   Cámara added…

…Citizens has managed to sock away a sizable surplus because Florida has been spared major storms in the past eight years, Cámara said.

“From the free-market prospective, we preferred the Citizens depopulation program because we want their premiums to reflect the real risk,” Cámara said. “But because of political reasons, I don’t think the premiums will increase that much” for those remaining with the program.


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