From Insurance Journal:

R Street Senior Fellow R.J. Lehmann said the legislation would serve as a disincentive for states like Florida to address their own insurance markets and instead rely on underfunded residual market entities like Citizens. He said that a federal backstop would encourage developers to construct even more property along state’s coastline, increasing catastrophic exposure.

“A new federal reinsurance program would exacerbate all these programs,” said Lehmann.

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