The post, “Can Donald Trump Fix Florida’s Insurance Problems? Can the Federal Government or the President Fix State Insurance Problems?” resulted in two readers forwarding relevant information suggesting more reasons why Patronis is asking for Trump’s help and Patronis’ call to dissemble federal government attention about Florida’s insurance marketplace.
One article, Whitehouse Presses Citizens Property Insurance for Answers about Company’s Solvency, noted in part:
Senate Budget Committee Chairman Sheldon Whitehouse (D-RI) sent a letter on Monday to Citizens Property Insurance Corporation renewing all requests for information and documents set out in the Committee’s November letter related to the company’s plans to address increased underwriting losses from climate-related extreme weather events and other disasters. The letter follows new comments from Florida Governor Ron DeSantis to CNBC that Citizens ‘is not solvent,’ a statement that also appears at odds with claims Citizens has made to the Committee.
In November, the Committee launched an investigation into Citizens amid growing concerns about the insurer’s long-term solvency and possible requests for a federal bailout should losses exceed the company’s ability to pay. Florida is on the frontline of climate risk, and as the state-backed insurer of last resort, Citizens faces potentially catastrophic exposure to climate-related property losses.
Citizens has not adequately addressed the Committee’s questions and has ignored repeated attempts at follow up. In a non-responsive letter dated December 15, Citizens’ President/CEO and Executive Director Tim Cerio referred to a Florida law enabling the company to levy special assessments on all policyholders as a basis for its solvency. But as the Committee stated in its initial letter, because ‘it would be both politically and economically unfeasible for Citizens to attempt to recoup tens of billions of dollars in losses from Florida policyholders, the Committee remains concerned that Citizens and the state of Florida would turn to the federal government for a bailout.’ Citizens’ December letter did not address this concern or substantively respond to the Committee’s requests for information.
The other news report, ‘Swirling in the drain’: Senate Budget Committee Breaks Down Florida’s Insurance Market, was about this federal investigation that criticized and brought to light the poor insurance market in Florida. This news report probably upset Patronis, leading to the call to Trump for help:
Lawmakers on the Senate Budget Committee held a hearing looking at the rising costs of home insurance in Florida and beyond and how factors, like inflation and climate change, may continue to shake the unsteady market and impact the economy nationwide.
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‘What happens when insurance companies go bust or don’t renew policies or pull entirely out of a state, families lose insurance, they can’t find a decent policy. They can’t afford what’s available. Some even pack up and move away. Some ended up with state-backed insurers of last resort, which may or may not be solvent,’ added Whitehouse, who earlier this year launched a probe into the state-backed Citizens Property Insurance.
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While Republican committee members agreed that, ‘Florida’s insurance market is completely screwed up,’ as Senator Ron Johnson, R-Wisconsin put it, how to address the unaffordability of insurance so it’s not a burden on taxpayers is where parties differ.
Johnson added it’s not climate change, but federal spending and inflation as the main factors driving up the costs.
I appreciate our readers sending us more information to make this blog more accurate. The recent media exposure about the poor-performing Florida insurance marketplace certainly would seem to be a causal factor for Patronis to ask for Trump’s help.
I have never known Donald Trump to be an insurance expert except for his noting how poorly the insurance industry pays claims and how Florida’s Republican politicians are selling out to insurance lobbyists, as noted in Donald Trump and Chip Merlin Agree—Ron DeSantis and Florida Republican Leadership Have Sold Out to Insurance Company Lobbyists. I quoted Trump:
In addition to wanting to cut Social Security (and raise the minimum age to at least 70) & MediCare, RINO Ron DeSanctimonious is delivering the biggest insurance company BAILOUT to Globalist Insurance Companies, IN HISTORY. He’s also crushed Florida homeowners whose houses were destroyed in the Hurricane – They’re getting pennies on the dollar. His Insurance Commissioner does NOTHING, while Florida’s lives are ruined. This is the worst Insurance Scam in the entire Country!
Maybe Trump can also work on making insurance companies pay legitimate claims since Florida’s politicians seem to be doing the opposite.
