Florida’s CFO supports reinsurance. But the Floridians are the ones who recycle the last resort – Artemis.bm

The Chief Financial Officer of Florida (CFO) Jimmy Patronis responded to the announcement of the Office of Insurance Regulation’s (OIR) of the plan to establish a temporary reinsurance system through the Citizens Property Insurance Corporation as “unprecedented,” but this reality along with other government subsidies. All reinsurance poses a risk to taxpayers and citizens.

Patronis said the insurance plan “could help stabilize the coverage offered by other providers that Demotech is reviewing.”

He also added that he “praised” the Governor of Florida for his work in protecting Florida’s law enforcement officers.

“The interim response announced today by the Governor and Commissioner Altmaier represents what the state of Florida is doing to protect and support Florida’s law enforcement officers,” Patronis said.

Saying that the insurance arrangement or facility represents, “An unprecedented arrangement that will allow multiple insurers, which Demotech is reviewing, to continue providing services to policyholders.”

While he also says that the insurance arrangement will also provide “great comfort to the insurance agents who are monitoring things on behalf of the policy holders.”

He agreed with the Governor of Florida saying that “the changes made in the private insurance sector are benefiting the overall health of Florida’s insurance market,” which is the most talked about thing at the moment, with no evidence at this time of a decrease in cases. , or a profit through a reduction in price for consumers.

The insurance issue in Florida is increasingly politicized, even though politicians have failed to do anything to help the market or regulators in a meaningful way.

It’s hard to disagree with Patronis about an unprecedented reinsurance deal.

No details are available on what plans the Regulator has or how insurance will be provided to those at risk of being downgraded.

It is important to note that Florida’s Citizens Property Insurance Corporation is the state’s insurance of last resort, not reinsurance of last resort.

Florida already has the ultimate reinsurer, or so the Florida Hurricane Catastrophe Fund (FHCF) believed.

Now, with the $2 billion Reinsurance to Assist Policyholders (RAP) program, which is outside of the FHCF, and taxpayer money, and now this new system with Florida residents, it seems that Florida may think it has the last three refunds.

It is worth stressing, however, that Florida Citizens is an insurer, not a reinsurer, so it is not known for providing high-loss insurance, or parts of it, which may seem very useful to carriers who have struggled to find enough money. capital or reinsurance to have ‘A’ with Demotech.

Those who are asking the question if this will really be “reinsurance” at all, or if this is more similar to the guarantee to the Citizen that maybe help the accused carriers policyholders in some way, or that they will take them to ensure continuity.

As we said, details are missing around the overall plan that was announced yesterday.

In the end, Florida doesn’t really have three “final” insurance providers.

It is truly the taxpayer and the law enforcement that is the restorer of last resort and in 2022, if a hurricane hits Florida, residents may be at greater financial risk than they would have been in years past.

The blame for this must lie at the feet of the legislators, who in recent years have voted for more efforts to implement meaningful change than we have approved in this special session of parliament.

Opportunities to end fraud and fraud and reform the non-performing property insurance market have abounded in recent years, but any bill that seemed to have any real meaning was voted down in the previous sessions of the House and Senate, where the amendment passed this one. The year is a small part of the population that has failed to continue, which is causing the lack of confidence in the government market to increase.

Read all of our news and analysis of the Florida insurance and reinsurance market.