Here is a link to a Podcast, “Did Hurricane Ian Bust Florida’s Housing Boom?”, October 18, 2022, with speaker Christopher Flavelle, He is a climate reporter at The New York Times. I think he has a good knowledge of insurance and reinsurance in Florida, and he talks about his opinion of the long-term effects of Hurricane Ian.
Do you have a “too loud;didn’t listen” version?
I was going to ask the same thing.
Shouldn’t really surprise actuaries familiar with Florida insurance.
After previous large cat losses (Andrew) most national carriers left the Florida market; the remaining small state carriers were only able to fill the gap by relying on cat reinsurance to manage the concentrated cat risk. However if reinsurers abandon the Florida cat market because of Ian then the remaining small insurers could be forced out of the market. That would push even more business to Citizens (public insurer of last resort), and there would be all kinds of issues with that, especially if Citizens can’t get reinsurance either.
And since real estate is the driving force in Florida’s economy, if the Florida insurance market implodes the state economy could collapse, home values deteriorate, etc.
Also the ultimate question was whether the original actions to preserve the Florida insurance market post-Andrew just incentivized risky property development and set up a larger, albeit delayed, problem.
Mine had a read transcript button
No F#%king Insurance, Period?
I thought I read somewhere that real estate speculators(?) were swooping in to buy ruined homes on the cheap, for the land.