The largest home insurance in Florida, Citizens Property Insurance Corporation, is talking to regulators about getting approval for a 93% rate increase.
I guess anthropogenic climate change and wholesale rot of public infrastructure does have a cost:
The biggest insurer in Florida has asked for a rate rise of 13.5 percent, but claims that a nearly 93 percent increase is necessary to keep up with the competitive market.
Because state restrictions limit the amount rates can increase annually, Citizens Property Insurance Corp. is currently pursuing a more moderate hike from the Florida Office of Insurance Regulation (OIR).
In a meeting held last week, Chief Actuary Brian Donovan of Citizens stated that this would result in an increase in the average cost of homeowners multi-peril plans, which are the most popular form of policies offered by the insurer, from $3,560 to $4,041.
Increases in the double digits would also be seen in other policy kinds, but in different quantities.
However, he noted that in order for the prices for Citizens’ personal multi-peril policies to become non-competitive, they would have to rise by 92.8 percent.
First, if a market is competitive for a seller, it means that they lack pricing power.
What this means is that Citizens Property Insurance believes that the market will support a 92.8% rate hike, and the only way that they could know this is if they sat in a room (OK probably on the golf course at Mar-a-Lago) and they have agreed on a 92.8% rate hike.
Remember, regulation of insurance is almost exclusively a state function, and Ron DeSantis has embraced corruption more aggressively than almost anyone else in the state.
Florida is unsustainable.
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