On Each Side, An Insurance Plan
Four weeks before Election Day, Democrat Jim Davis proposed a radical overhaul of Florida’s property insurance market, saying that as governor he would seek to have the state assume the liability for up to $20-billion annually in losses from hurricanes.
His hope: By the state assuming so much of the risk from hurricanes, and gambling that it won’t be slammed by too many storms, premium costs would be reduced dramatically for consumers.
“I am convinced that this is the single most powerful thing we can do to lower insurance prices next year,” Davis said Tuesday as he unveiled his plan before supporters in Boca Raton.
The congressman’s proposal comes weeks after Attorney General Charlie Crist, his Republican opponent, offered his own, less dramatic version of insurance reform. It also includes increasing the state’s financial exposure from hurricane damage but would largely leave the current insurance structure in place. More here.