With the start of the legislative session just weeks away, the American Consumer Institute Center for Citizen Research (ACI) today released the whitepaper “Welfare for the Rich: How Citizens Insurance Corporation Harms Floridians.” The paper analyzes Florida’s current property insurance market and provides important research which demonstrates how the current structure of Citizens Property Insurance Corp. is benefiting Florida’s more affluent consumers – including many out-of-state and foreign consumers – at the expense of the majority of Floridians. Among the recommendations provided by ACI are downsizing Citizens, bringing capital back into the state, ending harmful subsidies, encouraging price competition, rewarding mitigation and providing more protection to consumers who live in the state.
“Most Florida consumers, as well as a number of elected officials, are unaware of the real, ongoing risks associated with Citizens Property Insurance Corp.,” said Steve Pociask, President of the American Consumer Institute Center for Citizen Research. “The current structure of Citizens Property Insurance Corp. and the Florida Hurricane Catastrophe Fund is benefiting Florida’s most affluent, including non-Floridians, and hurting the 77 percent of non-Citizens policyholders as well as all businesses, renters, churches, charities and automobile policyholders. During the 2013 state legislative session, the Florida Legislature has the opportunity to implement policies that will protect consumers by getting adequate capital back into the state, and ending the cross-subsidies that provide no net benefit to Floridians as a whole.”
The study is available here.