Connect with us

Politics

How Florida avoided California’s insurance crisis — and why it must stay the course

Published

on


A few years ago, Florida’s insurance market was on the verge of collapse. Homeowners faced skyrocketing premiums, insurers were going bankrupt or fleeing the state, and Citizens, the state-backed insurer of last resort, was growing at an unsustainable pace.

The problem wasn’t hurricanes or bad luck — it was a broken legal system that incentivized fraud and endless lawsuits, threatening homeownership and the broader economy.

Then, in a rare moment of political clarity, Florida lawmakers acted. Between 2019 and 2022, they enacted sweeping reforms to stabilize the market. They took on the trial bar, curbed predatory lawsuits, and eliminated one-way attorney fees that had turned Florida into the lawsuit capital of the country.

The result? The insurance market began to recover.

But now, some want to roll back these reforms. That would be a mistake. If Florida needs a cautionary tale, it should look no further than California.

For years, California has buried its insurance market under layers of regulation, making it nearly impossible for insurers to operate sustainably. The state prohibits insurers from using predictive risk modeling, meaning they must base rates on outdated historical data rather than account for rising wildfire risks. The process for rate approvals can take years, forcing companies to either write policies at a loss or exit the market entirely. Many have chosen the latter.

The result? Insurers are abandoning California, leaving homeowners with fewer choices and higher premiums. Hundreds of thousands of policyholders have been forced into the California FAIR Plan, the state-run insurer of last resort, which was never designed to handle this level of demand. As the private market shrinks, the burden on the FAIR Plan grows, pushing costs even higher.

California’s challenges aren’t just about regulation. The state faces rising wildfire risks and soaring rebuilding costs, making home insurance more expensive. However, instead of adapting, California has doubled down on outdated policies that make it even harder for insurers to operate. That’s why well-established insurers like State Farm and Allstate have stopped writing new policies in the state.

This isn’t consumer protection. It’s a slow-motion collapse of the state’s insurance system, driven by policies that ignore economic reality.

Florida, by contrast, has spent years digging itself out of an insurance crisis. In 2022, only 16,000 policies moved from Citizens back into the private market. By 2024, that number had surged to 477,000 — a nearly 3,000% increase. Insurance lawsuit filings have dropped by nearly 70%, reducing one of the biggest cost drivers of higher premiums.

These reforms didn’t just happen. They required political courage, standing up to entrenched interests that benefited from the old system. But now, those same interests want to unwind these policies, claiming they went too far. If they succeed, Florida will be right back where it started.

There’s another piece of the puzzle that often goes unnoticed: reinsurance.

Florida insurers rely on reinsurance — essentially, insurance for insurance companies — to spread the risk of major storms. Most of this reinsurance comes from global markets, where investors constantly evaluate risk. These companies are not charities; they will raise rates if they believe Florida’s legal and regulatory environment is becoming unstable again.

Since Florida’s reforms, reinsurers have responded positively, providing more affordable coverage to primary insurers. But if policymakers reverse course, it would send a clear signal to reinsurers that Florida is returning to its old ways — giving them an excuse to hike rates. Those costs would be passed directly to homeowners.

Florida either sticks with policies that stabilize the market or follows California’s path into crisis. The state must avoid overregulation that drives insurers out and forces homeowners into state-backed coverage. A thriving market requires competition, stability, and predictability, not artificial price controls that distort incentives.

Florida lawmakers took bold action to fix the insurance crisis. Now, they need to have the discipline to stay the course. The reforms are working. The system is stabilizing. The momentum is real.

The worst thing Florida could do now is throw it all away.

___

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


Post Views: 0



Source link

Continue Reading

Politics

James Uthmeier says Andrew and Tristan Tate keep digging themselves ‘deeper into a hole’

Published

on


The investigation continues.

Attorney General James Uthmeier says Andrew and Tristan Tate are continuing to push their luck amid a probe into potentially illegal activities launched when they came to Florida a few weeks ago.

During an appearance on “The Dana Show,” Uthmeier condemned the brothers’ “weakness and sickness,” and suggested that a case against them continues to build.

“Every time these guys open their mouths, it gets them deeper in a hole,” the Gov. Ron DeSantis-appointed legal officer said.

“If we can show that they committed crimes on Florida soil, then we will continue to pursue them, you know, at all costs.”

Uthmeier said the two are “charged with horrific things around the world” and “go public and they make jokes about being with girls that are 15 or 16.”

“They make jokes about not knowing the age of consent in Florida, in the United States. When you have victims coming forward, when you have public admissions, when you have criminal investigations around the world, there are clearly reasons why we, as a state, have a duty to investigate and protect our citizenry. And we will continue to do that,” Uthmeier promised.

“When it comes to human trafficking and preying upon, you know, our women and girls that are not at the age of majority, we will stop at nothing to protect them.”

While the Tates have been accused of human trafficking in Romania and face civil action for sexual abuse from four women in Britain, they have not been convicted there or anywhere else, despite a wide array of sordid soundbites and lurid anecdotes about them.

Andrew Tate continues to bait Florida into arresting him, and recently trolled First Lady Casey DeSantis by suggesting that she won’t be elected Governor if the state lets him run free.


Post Views: 0



Source link

Continue Reading

Politics

Rick Scott likes Byron Donalds over Casey DeSantis for Governor

Published

on


‘I’m going to do everything I can to be helpful to him. I think he’ll be a phenomenal Governor.’

The most recent former Governor is ready for change in the Governor’s Mansion.

U.S. Sen. Rick Scott says he prefers U.S. Rep. Byron Donalds over First Lady Casey DeSantis in the 2026 Governor’s race.

Scott is closely aligned with President Donald Trump and has had a distant relationship with current Gov. Ron DeSantis. New comments from Scott are the latest indication that the First Lady may be the underdog if she runs in the Republican Primary next August.

“Byron’s a friend. He’s my Congressman,” Scott told radio host Brian Kilmeade Monday when asked if he would endorse Donalds. “I’m going to do everything I can to be helpful to him. I think he’ll be a phenomenal Governor. I think he’s going to win. I’m glad that Trump endorsed him.”

Asked about Casey DeSantis entering the race, Scott reiterated that “Byron Donalds is going to win.”

Scott said Donalds has a “track record,” that he “works his butt off,” and that he “believes in the right things.”

Scott offered yet another reminder of who Trump backs, meanwhile, describing the President’s endorsement as “golden in this state.”

The dynamic between Scott and the current Governor has been rough since DeSantis’ inauguration. The two have squabbled about issues ranging from the state’s unemployment website to the need to return unspent COVID stimulus money to the federal government, and they have not visibly cooperated on much of anything in the last six-plus years.

Gov. DeSantis has yet to respond to Scott backing Donalds, but when the Senator endorsed Trump over him in the 2024 Republican Primary, DeSantis accused Scott of trying to “short-circuit” voters.


Post Views: 0



Source link

Continue Reading

Politics

Florida unemployment rate in January shows first increase in months

Published

on


Florida’s jobless rate increased for the first time in about a half year to start 2025.

FloridaCommerce released the January figures showing that the unemployment rate came in at 3.5%. That’s the first increase in about a half year.

The rate held steady at 3.4% for the back half of 2024. Prior to that, the rate remained at 3.3% for most of early last year.

There were 390,000 people out of work in January in Florida out of a total labor force of 11,188,000 people in the state. That total labor force figure is the highest number Florida has ever seen.

“Florida continues to prove that leadership and conservative fiscal policies drive success,” said Gov. Ron DeSantis. “We will keep the momentum going by insisting on reducing government spending, continuing to eliminate bureaucracy, and finding more tax reductions for Floridians.”

While Florida’s jobless rate increased in January, it still remains lower than the national rate, which is 4%. The Sunshine State has maintained a lower jobless figure than the national number for 51 straight months.

Miami-Dade County had the lowest unemployment rate in the state for January at 2.4%, slightly down from December’s 2.5%. But compared to a year ago, January’s unemployment rate saw a 0.5-percentage-point increase from last year.

Sumter County had the highest unemployment rate in the state in January at 6.9%.

Among major metropolitan areas in Florida, Fort Myers and Pensacola shared the dubious distinction of having 4% unemployment rates in January, the highest among large metro areas. Both were increases month-to-month and compared to January 2024.

Jacksonville and Tampa each had a 3.8% unemployment rate in January. Both were increases from a year ago, and each had an increase from the December unemployment rate.

Palm Beach County registered a 3.7% jobless figure in January. That figure was also up for the month and the year-over-year comparison.

The Orlando area also had an increase in the jobless figure, coming in at 3.6%. As was the same with other major metro areas, that figure was an increase for the month and the year.


Post Views: 0



Source link

Continue Reading

Trending

Copyright © Miami Select.