news Gulf Coast insurers nearing crisis+collapse amid global warming, one borrowing $750M

[Vermillion]

Quote

The Gulf Coast insurance crisis has hit a new low as two state-chartered insurance associations are being forced to borrow hundreds of millions of dollars for the first time in three decades to pay the hurricane claims of insolvent insurers. Borrowing in Florida and Louisiana could reach a combined $1.35 billion and will be repaid largely by insurance policyholders across each state through premium increases or surcharges that will last for years.

 

The Florida Insurance Guaranty Association announced plans in April to borrow up to $750 million to pay claims from Hurricane Ian. The association last borrowed money in 1992 after Hurricane Andrew demolished large parts of South Florida. The borrowing will cost hundreds of millions of dollars in interest payments and will be repaid by assessments that last a decade or longer. Insurance companies generally recoup assessments through increased premiums, surcharges or state tax credits. 

 

[geddymonster]

And yet many elected officials still don’t even acknowledge that climate change is real (especially politicians from those states).

[byzantium]

And yet their elected officials are too busy terrorizing trans people to care.  

[Gorjesspazze9]

I just moved back to Chicago area from Florida last year because my parents were concerned about hurricanes and flooding. It kinda sucks cuz Florida was amazing 

[Zox]

I’ve been doing research on US insurers and was flabbergasted at how many of the big players don’t do business in FL anymore given the climate  I’d never understand how the others can survive/make any profit but guess I now have my answer

[FreeXone]

Just now, Zox said:

I’ve been doing research on US insurers and was flabbergasted at how many of the big players don’t do business in FL anymore given the climate  I’d never understand how the others can survive/make any profit but guess I now have my answer

It’s been that way for awhile. In California you have to use overseas insurance  for fire and earthquake. It’s ridiculous  

[Bosque]

Can’t say I feel all that bad 

 

[Orsay]

girl lemme go visit Miami while I can because...