New Florida Study: Solutions for Restoring Florida’s Property Insurance Market

by Matthew Glans on February 8, 2011

The James Madison Institute (JMI) recently released a new study written by Eli Lehrer, vice president for DC Operations at The Heartland Institute and James Madison adjunct scholar.

The new paper, a James Madison Institute Backgrounder, examines Florida’s property and casualty insurance environment and its unique challenges and makes several recommendations for how Gov. Rick Scott and the new Florida legislature can change Florida’s current insurance policies to solve the state’s growing insurance problems.

The JMI Backgrounder, “Solutions for Restoring Florida’s Property Insurance Market,” can be found at the James Madison Institute’s Web site, The paper’s press release is reprinted below.

Solutions for Restoring Florida’s Property Insurance Market
JMI releases white paper on property insurance reform

TALLAHASSEE – For two years, state leaders have not effectively addressed Florida’s dysfunctional property insurance system despite bipartisan support for reform. Entering 2011, Florida’s taxpayers and economy remain at great risk for financial devastation—even hardcore gamblers know you can only go against the odds for so long without getting burned.

“The time for new laws and new policies is now. Florida cannot afford to wait any longer.”
Eli Lehrer, JMI Adjunct Scholar and Heartland Institute Senior Fellow

In a newly released Backgrounder, “Solutions to Restore Florida’s Property Insurance Marketplace to Protect Taxpayers and the Insured,” James Madison Institute Scholar Eli Lehrer proposes a broad range of recommendations for improving Florida’s property insurance environment. Divided into four major sections, the study lays out Florida’s problems and unique challenges and discusses how the state can best change its policies with regard to the Florida Citizens Property Insurance Corporation, the Florida Hurricane Catastrophe Fund, the state’s building environment, and the evolving problems with sinkholes.

* Goal 1: Shrink Citizens by 60 percent over the next four years.

* Goal 2: Retain the Cat Fund as a self-financing “last resort” buffer for Katrina-sized events but shrink it to remove the dangers it poses to state taxpayers.

* Goal 3: Make Florida the most hurricane-safe state in the nation through vigorous private and public mitigation efforts.

* Goal 4: Reform policies, laws, and regulations involving sinkholes to ensure that Floridians’ legitimate claims are paid.

“Florida has the most hurricanes of any state, $2 trillion in total coastal exposure, and a grossly dysfunctional property insurance system. Our leaders and policy makers must make significant changes, before our luck runs out.” – Dr. Robert McClure, JMI President and CEO

All JMI publications are available online at To comment or request a copy, contact Tanja Clendinen at 850.383.4633 (toll free 1.866.340.3131) or .

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