Senate committee investigates Florida’s insurer of last resort

Senate committee investigates Florida’s insurer of last resort


Senate committee investigates Florida’s insurer of last resort | Insurance Business America















It will look into its financial viability

Senate committee investigates Florida's insurer of last resort


Insurance News

By
Mika Pangilinan

The US Senate Budget Committee has initiated an investigation into the financial viability of Citizens Property Insurance Corporation, known as Florida’s insurer of last resort.

In a letter addressed to Governor Ron DeSantis and other top Florida officials, Committee Chair Sheldon Whitehouse requested documents outlining Citizens’ plans to “address increased underwriting losses from climate-related extreme weather events.”

The letter went on to state that Florida might turn to the federal government for a bailout in the event of Citizens’ insolvency, adding that such a request could put the budget and American taxpayers “at substantial risk.”  

Whitehouse pointed to recent reports by Swiss Re and Munich Re suggesting that Citizens could see losses ranging from $36 billion to $162 billion, depending on the severity of future catastrophes.

“As most people know, Citizens has not been solvent,” DeSantis had said to the press last March. “If you did have a major, major hurricane hit with a lot of Citizens property holders, it would not have enough to pay out.”

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