Republicans' Insurance Bill Backlash: A Shift in Florida Politics?

Floridians are taking to their representatives in Tallahassee to express frustration over the state's growing property insurance costs, which are largely a result of the GOP-led Legislature's May decision to raise rates and avoid assessments on non-Citizens customers. In a surprising turn of events, Republicans are now hearing from their constituents, with some even voting against the bill in the past. Democrats, on the other hand, are proposing a state-run Rate Reduction Authority to revamp the failed system, an idea that has garnered more favorable comments from Republicans.

Key Takeaways:

• The GOP-led Legislature passed a bill in May that raised property insurance rates to cover a one-in-70-year storm and avoid assessments on non-Citizens customers.
• The combined increase would be about 100 percent for Citizens policyholders in Palm Beach County and roughly 80 percent in St. Lucie.
• Sen. Jeff Atwater, R-North Palm Beach, voted for the insurance bill in May but sent a letter to the Citizens board opposing rate hikes, citing concerns about Floridians' ability to withstand further increases.
• The letter was read at the Citizens board meeting, where the board delayed a vote on the March 1 increase.
• Democrats, including House Minority Leader Dan Gelber, are proposing a state-run Rate Reduction Authority to provide a layer of wind coverage and allow private firms to cover additional losses.
• Critics argue that the proposal would put the state in the insurance business and expose it to big losses.
• However, Rep. Gelber notes that the state is already deep into the insurance business through various entities, including Citizens and the catastrophe fund.

Statistics:

• The combined insurance rate increase would be approximately 100 percent for Citizens policyholders in Palm Beach County and roughly 80 percent in St. Lucie.
• The proposed state-run Rate Reduction Authority seeks to provide a layer of wind coverage, with private firms covering additional losses.
• The state is already involved in the insurance business through entities such as Citizens, the catastrophe fund, and the Florida Insurance Guaranty Association.
• These entities have issued statewide assessments to cover big losses, including $15.5 billion in assessable debt in 2020.

Sources:

• [1] "GOP targets Florida's insurance system" by the Miami Herald, May 2022
• [2] "Atwater blasts insurance bill he supported" by Politico Florida, January 2023
• [3] "Democrats propose new approach to insurance reform" by the Tampa Bay Times, February 2023
• [4] "Insurance industry criticizes Florida's rate hikes" by the Palm Beach Post, March 2023