Politics

Citizen Zero — a smarter way for Florida to manage insurance risk

Published

8 hours ago

March 5, 2025

Florida’s homeowners are in crisis. Insurance rates have soared, and Citizens Property Insurance — the state-run “insurer of last resort” — has grown into Florida’s largest property insurer, at one point reaching 1.4 million policies and half a trillion dollars in exposure.

This expansion places every taxpayer at risk when the next major hurricane hits.

This is not just a problem for Citizens policyholders. If Citizens runs out of money after a catastrophic storm, all Floridians with home, auto, or business insurance could face assessments to cover the losses.

The system is broken, and delaying reform only increases costs and risks.

For years, policymakers have attempted to shrink Citizens through “takeouts,” where private insurers selectively assume policies. But this process is too slow and limited. While cherry-picking the best risks has been helpful in removing policies, it generally leaves Citizens with the riskiest policies. We need a structured transition that incentivizes insurers to assume Citizens’ policies to reach “Citizens Zero.”

The Quota Share Model: A smarter approach

A quota share model — a widely used strategy in global reinsurance markets — can shift risk to private insurers while stabilizing Florida’s fragile insurance system. Implemented correctly, this model can phase out Citizens as an insurer and transform it into a risk manager, achieving the goal of “Citizen Zero.”

Why takeouts alone won’t work

Florida’s reliance on takeouts has failed to meaningfully reduce Citizens’ highest-risk exposure due to several factors:

— High-risk homes – Many coastal properties are uninsurable in the private market under traditional underwriting standards.

— Rising reinsurance costs – Private insurers must purchase reinsurance, and skyrocketing prices make it difficult to take on more Florida policies.

— Market instability – Insurers frequently enter and exit Florida’s takeout market, making one-time policy transfers an unreliable long-term solution.

Citizens dominates in high-risk areas because it offers below-market rates subsidized by taxpayers. As long as homeowners can obtain cheaper coverage through Citizens, private insurers will struggle to compete, perpetuating the cycle.

How the Quota Share Model works

Instead of waiting for private insurers to assume policies selectively, Florida should create structured risk-sharing agreements to encourage insurer participation. A quota share model works as follows:

— Risk sharing – Citizens and private insurers split premiums and financial responsibility for claims at a fixed percentage.

— Private market involvement – Private insurers handle underwriting, claims, and customer service, reducing Citizens’ role.

— Gradual transition – Citizens receives payments for capital costs and a share of premiums, allowing a structured shift to private coverage.

This model distributes risk across multiple carriers, ensuring a stable, long-term shift away from government-backed primary insurance.

Steps to achieve Citizen Zero

To implement this model, Florida should take the following steps:

— Transform citizens into a risk manager – Instead of a full-service insurer, Citizens would become a quota share facilitator, ensuring gradual risk transfer to private insurers.

— Implement competitive bidding – Private insurers bid on quota share participation, promoting market-driven risk-sharing agreements.

— Reduce administrative costs – Citizens eliminates underwriting, claims processing, and customer service, lowering expenses.

— provide temporary state reinsurance – Short-term state-backed reinsurance would encourage insurer participation until the market stabilizes.

— Increase private market participation – Over time, private insurers assume a greater share of policies, eventually privatizing Citizens’ risk entirely.

Case study: Monroe County

If this model can work in Monroe County, one of Florida’s most challenging insurance markets, it can work anywhere. A possible pilot program could include:

— An 80/20 risk split – Citizens initially retains 80% of risk, with private insurers assuming 20% to allow a gradual transition.

— Private market administration – Private insurers manage claims and underwriting, reducing Citizens’ role.

— Competitive bidding – Insurers bid for quota share levels, ensuring efficient risk distribution.

— State reinsurance support – Temporary state-backed reinsurance would attract insurers to the market.

— Gradual phase-out – Private insurers assume more risk as conditions improve, leading to full privatization.

Skeptics may argue that private insurers won’t participate. However, a structured bidding process, temporary state-backed reinsurance, and a gradual transition period would mitigate this concern.

This approach isn’t theoretical — it has been used successfully elsewhere:

— National Flood Insurance Program (NFIP) contracts private insurers to handle policy servicing and claims.

— Texas Windstorm Insurance Association (TWIA) employs quota share agreements to shift hurricane risk to private carriers.

— Global reinsurance markets use quota shares to spread risk and stabilize pricing.

Florida has an opportunity to rethink Citizens — not just by shrinking it, but by redefining its role entirely.

A quota share model would transition Citizens from an oversized, taxpayer-backed insurer into a lean, market-driven risk manager. This approach would lower homeowners’ costs, reduce taxpayers’ financial risk, encourage insurers to reenter the market and ensure a stable, long-term insurance solution for Florida.

The goal of Citizen Zero is within reach — but only if we act now. Florida should commission a feasibility study on quota share implementation to assess regulatory changes, insurer participation, and economic benefits.

The next major hurricane is not a matter of if, but when. If we fail to act, we risk catastrophic financial consequences for every Floridian. The time to fix this broken system is today.

___

Former Senator Jeff Brandes is the founder and president of the Florida Policy Project.

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Politics

Tampa’s iconic River O’Green festival returns with food, drinks, entertainment

Published

42 seconds ago

March 6, 2025

May Greene

Tampa’s River O’Green festival is returning this year, with a new “Leprechaun’s Hideout” to escape the sun and enjoy some Irish brews.

The annual St. Patrick’s Day celebration takes place each year on or near the holiday, this year on March 15.

The Tampa Downtown Partnership, which organizes the event, is describing the 2025 festival as its biggest yet.

As it always does, the festival’s highlight will be coloring the Hillsborough River green. The process uses non-toxic, biodegradable dye that meets Environmental Protection Agency standards.

In addition, the event, located at Curtis Hixon Waterfront Park and running from 11 a.m. until 6 p.m., will include live entertainment, including musicians, Irish dancers and spoken word performances, as well as a pet costume contest featuring pets in adorable St. Patrick’s Day attire at the Barrymore Hotel at the Tampa Riverwalk.

The Tampa Rough Riders will also conduct their signature St. Patrick’s Day Parade through downtown Tampa starting at 3 p.m. The parade will include festive floats, music and beads.

Attendees, or those passing through the area, should plan ahead for crowds.

Ashley Drive will be closed for the event, beginning at 11 a.m. The direction at Gasparilla Plaza will change at 11 a.m., but won’t close until 2 p.m. Cass Street will close at Ashley Drive at 2 p.m. All road closures associated with the event are expected to be lifted between 7:30 and 8 p.m. The waterway between Cass Street and Kennedy Boulevard will be closed from 10:30-11:30 a.m.

Parking is available at a number of locations. Those attending on bike can utilize a free on-site bike valet, provided by the Downtown Partnership. Transit options are also available on HART’s Route 1, which is currently operating fare-free. Those attending by car can park at the Fort Brooke Garage, located at 107 N. Franklin St.; or the Twiggs Garage, located at 901 E. Twiggs St. Attendees can also park in Ybor City and then take the TECO Streetcar to the Whiting Station.

Entertainment at the event includes live music on the Main Stage from the Irish Buskers at 11:15 a.m.; Paddy O’Furniture at 1:15 p.m.; and George Pennington & The Odyssey at 4 p.m. The pet costume contest will be on stage at 3:30 p.m.

The Terrace Stage will include performances from the Finnegan Irish Dance Academy at 1 p.m. and 3 p.m. and poetry readings from GrowHouse Tampa at 11:30 a.m. and 2:30 p.m.

This year’s River O’Green is sponsored by Grow Financial, with additional support from TECO, Pirate Water Taxi, The Lost Pearl, Craft Tampa, the city of Tampa, Freedom Boat Club, the Barrymore Hotel, iHeartRadio, Busch Gardens and Kuducom.

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Pam Bondi touts success over terrorists, international gangs during first month as Attorney General

Published

6 hours ago

March 5, 2025

May Greene

Attorney General Pam Bondi said it wasn’t long ago she had to convince members of her party that fentanyl represented a criminal threat.

Now, she finds it amazing Democrats show reluctance to celebrate the arrests of international gangs.

But just over a month after the Floridian was confirmed as President Donald Trump’s top law enforcement officer, Bondi feels confident the U.S. will lead successful efforts to stop organized crime around the globe.

“MS-13, Tren de Aragua, all of these gangs that are now terrorist organizations, we are going to make our streets safe,” Bondi said.

The Hillsborough County Republican gave brief remarks at Rescuing the American Dream’s first summit in Washington. The event, headlined by U.S. Sen. Rick Scott, will focus on how conservatives can help implement the Trump agenda in the President’s first 100 days.

Bondi and Scott shared a stage at the event, not for the first time. Scott recalled at the event how he and Bondi ran for office for the first time the same year, in 2010, when he ran for Governor, and she ran for Florida Attorney General. Both won those statewide offices and have gone on to their current roles at the federal level, Scott with his arrival in the U.S. Senate in 2019 and Bondi with her recent selection to Trump’s Cabinet.

Scott noted that when he and Bondi left state office, crime rates in Florida had fallen to a 47-year low.

“That was because of what Pam did,” Scott said. “She was working with sheriffs and working with police chiefs all across the state.”

Bondi said her work involves a lot more legal maneuvering with entities from around the globe. She noted that after Trump’s Address to Congress last night, she had to leave to oversee the extradition of suspected terrorist Mohammad Sharifullah, who authorities say confessed to involvement in the 2021 attack on Abbey Gate in Afghanistan in 2021.

“This is all due to President Trump,” Bondi said. “He got to call those 13 family members — can you believe that? — who have been waiting years for justice.”

Bondi said police forces around the globe now feel grateful Trump is back in office, and she promised further action on his “Make America Safe Again” agenda to strengthen law and order.

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Ashley Moody asserts Republicans just became the ‘new party of women’

Published

7 hours ago

March 5, 2025

May Greene

U.S. Sen. Ashley Moody said a vote on girls’ sports proves Republicans just became “the new party of women.”

The remark came during an opening reception for Rescuing the American Dream’s first summit, which kicked off Wednesday evening in Washington. U.S. Sen. Rick Scott is headlining the event, which will focus on how conservatives can advance President Donald Trump’s agenda during his first 100 days in office.

Senate Republicans say they did their part when they tried to pass a ban on transgender athletes participating in women’s sports. But the measure failed on Monday to reach the 60-vote threshold necessary to break a Senate filibuster. No Democrat supported advancing the bill.

At the summit, Attorney General Pam Bondi was also in attendance and said she was flabbergasted that the proposal drew no Democratic support.

“The big picture is, some of these girls, these teenagers, have worked there since they’re little in all their different sports so they can go to college on a college scholarship, and they’ve lost that because men are beating them in women’s sports,” Bondi said.

Moody said she was equally upset at Trump’s address to Congress when Democrats in Congress declined to stand to applaud what once would be seen as successes for the entire country.

“I am the wife of a career DEA agent and now a police officer and administration attorney. They are celebrating that we have brought to justice (Drug Enforcement Agency agent) Kiki Camarena’s murderer,” Moody said, referencing the recent arraignment of alleged drug lord Rafael Caro Quintero.

“It is something that has hung over America for so long. And Donald J. Trump brought justice, and we are celebrating that.”

She said the party should unify around the efforts of Republicans to protect children in the streets and the sports field.

“The fact that they (Democrats) sat on their hands when we talked about Tren de Aragua and MS-13, and all of these people that we have brought to justice, and they didn’t cheer for that, that just shows you who is leading the fight against the real perils and dangers that are facing this nation, and that is the Republican Party,” Moody said.