Posted On: March 26, 2007, 3:24 pm CDT

Posted By: Florida Retail Agent

Let's face it. The problem isn't whether Citizens can turn a profit. It's no-one can afford to pay the bill in the event of a major Hurricane. So with that said, the solution seems clear and addressable. Let Citizens write the Wind Only portion of the property risks statewide. Then, the property market will stabilize, and the risk of catastrophic loss is placed squarly in the hands of the state. They can run up a tremendous CAT fund and use it to pay Hurricance Claims, or issue bonds until the cows come home while the rest of the insurance marketplace settles out without the CAT risk. Put the hot potato in the hands of Citizens and leave the rest of the insurance market to the insurance companies. Can't understand why this is such a difficult solution to work out. Can you imagine the insurance companies complaining if the wind risk is removed from all their policies? If the state wants to be in the insurance business, give them the risk that no-one wants.