Florida has attempted to get its property insurance house in order. It looks like it may topple over anyway. Already reeling from two hurricanes in recent months, the monstrous Hurricane Milton pummelling Tampa could cause more than $60bn in insured losses.

“It is ironic that Florida may have become uninsurable just after its population has surged, bolstered by wealthy refugees who wanted warm weather as well as low taxes, limited regulation and a high-growth economy. Perhaps some among this accomplished group can design an insurance scheme that works in a changing climate.”

Financial Times 10th October 2024

Rory Yates the Chief Strategy Officer at EIS has long banged the drum that insurers must be creative and innovative in solving this problem. At the same time the industry cannot achieve that itself.

"Tackling this important subject is not only vital to the insurance industry, it's also very close to my heart. And thanks to brilliant journalism I once again got to tackle adaptation and resiliency within this. Topics vitally intrinsic to each other. 

And it's also vital that we make sure insurance gets evermore engaged in tackling climate change head on, and that governments, agencies and other industries collaborate more with insurers. 

There's so many answers insurance can bring, as well as being essential to humanity, enabling us to continue to live in our homes, repairing and recovering them when disaster strikes. 

And we must continue to do more.

Full article here: https://lnkd.in/eTeCsZge "

It will not be easy that's for sure. 


Citizens Property Insurance Corporation, established by Florida in 2022 as a “last resort” insurer that has increasingly become the only option for many of the state’s residents. Despite efforts at “depopulation” — or attempts to shift its policyholders to private providers — Citizens’ book of business has swelled to more than 1.2mn out of more than 7mn total homeowner policies in Florida.

Hurricane Milton could result in a 2023 surplus changing to $18BN losses wiping out its surplus;  under Florida law it would have to levy surcharges on its customers and other policyholders in the state.

Florida's acute predicament holds lessons for all geographies, and I urge you to follow the link above and read Amelia Matthewson's article in Insurtech Magazine.