Florida to Borrow Billions to Backstop Insurers After Hurricanes

[In It to Win It]

Florida to Borrow Billions to Backstop Insurers After Hurricanes

(Bloomberg) -- Florida is planning to borrow as much as $3.8 billion to infuse a state fund that reimburses property insurers for losses when homes are damaged or destroyed by hurricanes.

The Florida State Board of Administration Finance Corporation expects to sell at least $1.5 billion of municipal bonds to raise money for the Florida Hurricane Catastrophe Fund, according to a securities filing dated Jan. 19. It marks the state’s latest effort to ensure that it can backstop its increasingly fragile insurance industry, which has been grappling with a surge of claims and lawsuits in recent years.

In June, the Florida Insurance Guaranty Association, which handles the claims of insolvent insurers, sold debt for the first time in three decades to help support insurance claims. The state agency faced higher costs after Hurricane Ian in 2022 and a deluge of lawsuits forced property insurers to close.

The latest bond sale wasn’t prompted by a specific hurricane. Proceeds will replenish funds from debt issued in 2020 that will mature in 2025, and give the fund “additional capital at an established interest rate and the ability to access funds quickly in the event of a significant storm event,” said Gina Wilson, chief operating officer of the Florida Hurricane Catastrophe Fund, in an emailed statement.

[Takket]

1. what would happen if a Democrat propsed this?

SOCIALISM!!!!!!!!!!!!!!!!!!!!

[Emile]

4. Exactly what they would be saying. They still may

somehow call it that and blame the Democrats.

Look at this example: https://www.democraticunderground.com/100218617652

[bucolic_frolic]

2. Insurance is a betting game

With global warming and storms it may well be a black hole.

[barbaraann]

3. Who is going to lend Florida that money? n/t

[Marthe48]

5. But the same fl. leadership is going to take 5 million out of a taxpayer funded

program to pay traitor's legal bills?

https://democraticunderground.com/?com=view_post&forum=1014&pid=3182984

[Deuxcents]

6. But the Florida legislators are wanting a 5 million dollar slush fund for tfg from the taxpayers

Our troubles have compounded since the gov has been on a failed attempt to make all states like Florida. 😱

[getagrip_already]

7. Knowing republicans....

There are going to be a lot of leaks in that fund.

That's an awful lot of money, and it will be awfully tempting to invest in some awfully shady funds and junk bonds, earning millions in commissions for the wives and families of politicians around the state; especially those with woke goes to die jackets.

[Chainfire]

8. We have to protect all of that beachfront property owned by the you know who.

The country club owned by a disgraced former president is only 16 feet above sea level and has salt water on two sides...

[struggle4progress]

9. Crash on the levee

[Xolodno]

10. Catastrophe Bonds

More and more insurance companies are using them as reinsurers pull out or jack rates higher than the company get their rates approved by the DOI.

If you purchase one of these bonds and no major hurricanes occur, you make a nice profit. But if a major one does, kiss that investment good bye.