Market Implications of Public Policy Interventions: The Case of Florida's Property Insurance Market

Medders, Lorilee; Nyce, Charles; Karl, J. Bradley

doi:10.1111/rmir.12006

Cited by 17 publications

(39 citation statements)

References 34 publications

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“…Based on the preceding requirements of an ideally insurable risk, even with participation by reinsurers and ILS investors, private insurance markets struggle to provide sufficient coverage to meet society's needs for some risks (Klein and Kleindorfer 2003;Cummins 2006;Medders, Nyce and Karl 2013). These risks-commonly called extreme or catastrophic risks-are uninsurable through conventional insurance markets because they defy the conditions private markets require for operation.…”

Section: Volatility and Market Problemsmentioning

confidence: 99%

“…Regulators and legislators, in turn, desire a healthy insurance market. To the extent private insurers cannot provide sufficient insurance capacity profitably, policymakers are under pressure to utilize the state insurance entities at a minimum for insurance availability, and may also use them for insurance affordability (Medders et al 2013). …”

Section: Effects On Underwriting Terms and Pricesmentioning

confidence: 99%

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Climate Change Impacts on Insurance in Florida

Medders¹

2017

Florida’s Climate: Changes, Variations, &Amp; Impacts

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Key Messages• The potential for substantial changes in the climate make the risk assessment, underwriting, and pricing of insurance and insurance-linked securities more complex.• Catastrophe loss models incorporate scientific assumptions about climate change into the risk assessment capabilities for multiple disaster perils, including hurricane, flood, and wildfire, among others.• Insurers and reinsurers are at the forefront of research regarding the effects of climate and climate change on future loss costs, loss uncertainty, and opportunity.• Florida is and will continue to be one of the world's largest insured, catastrophe markets, and as such is highly vulnerable to changes in the climate as well as changes in the markets for protecting against financial risk.• It is especially important for Florida and Floridians to implement smart ways of adapting to climate change and its effects in order to protect our economic sustainability.

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Section: Volatility and Market Problemsmentioning

confidence: 99%

Section: Effects On Underwriting Terms and Pricesmentioning

confidence: 99%

Climate Change Impacts on Insurance in Florida

Medders¹

2017

Florida’s Climate: Changes, Variations, &Amp; Impacts

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“…These strategies and the market implications are treated extensively in Medders et al. () and are highlighted here.…”

Section: Introductionmentioning

confidence: 96%

“…The authors submit that Florida's property risk financing system serves to illustrate how short-term political economies can easily override the long-term interests of the market economy, creating substantial negative externalities that are difficult to correct. The authors further assert that Florida's current path is unsustainable, and that greater preparation and focus 1 Medders et al (2014) provide a detailed analysis as well as a lengthy bibliography of prior work on the subject. 2 See the American Insurance Association's link at http://www.aiadc.org/File%20Library/ Resources/Industry%20Resources/PROPERTY-National--Residual-MarketDescriptions-White-Paper-295953.pdf 3 The Property Insurance Plans Service Office (PIPSO) has links on its website to all FAIR plans and wind pools in the United States covering auto, property, etc.…”

Section: Introductionmentioning

confidence: 99%

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Evaluating the Public Financing for Florida's Wind Risk

Medders

Nicholson²

2018

Risk Manage Insurance Review

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To increase residential property insurance options for wind‐related disaster events, the State of Florida created the Citizens Property Insurance Corporation (Citizens) and the Florida Hurricane Catastrophe Fund. These entities play a major role in financing disaster losses for Florida. In this policy article, the authors assert that the State of Florida has emphasized the political objective of insurance affordability rather than managing and controlling risk for the benefit of the citizens of the state. The burden for financing catastrophic hurricane losses has been transferred to the public as most property and casualty insurance policies in Florida are assessable. Florida plays an inherent leadership role in the disaster risk arena, given its high exposure as well as its deep insurance penetration. The authors assert that while Florida has taken a leadership role in disaster risk control, the state's disaster risk financing strategy has failed to employ a long‐term focus that recognizes the interconnectedness of all parts of the system. The opportunity for the state going forward is to change its public policy focus to one that emphasizes availability over affordability. Florida's private markets could operate more competitively, and thus not unnecessarily place Florida's citizens and their economy at risk.

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A bridge over troubled water? Flood insurance and the governance of climate change adaptation

Hampton

Curtis

2022

Geoforum

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Market Implications of Public Policy Interventions: The Case of Florida's Property Insurance Market

Cited by 17 publications

References 34 publications

Climate Change Impacts on Insurance in Florida

Climate Change Impacts on Insurance in Florida

Evaluating the Public Financing for Florida's Wind Risk

A bridge over troubled water? Flood insurance and the governance of climate change adaptation

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