Good news from Florida
Good news from Florida on the insurance front: the state-run Citizens Property Insurance Corporation has shrunk their exposure by some 35 percent. This is a win for competitive insurance markets and for the taxpayers of Florida.
Last week in The Hill, I noted that taxpayers continue to bear significant risk from natural disasters:
The calm Atlantic hurricane season was a blessing for taxpayers, because both state and federal governments have taken on a large share of financial liability for hurricanes and other natural disasters. In Florida, the state-run Citizens Property Insurance Corporation has a half-trillion dollars of liabilities on its books. In Louisiana alone, the federally backed National Flood Insurance Program has over $100 billion in exposure.
While there’s still more work to do, it’s great that this amount has been pared back from $510 billion to $330 billion in the last 21 months. That still leaves taxpayers facing liabilities when a major storm next hits Florida, but it’s a great step in the right direction.
