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Florida Governor Ron DeSantis addressed the “uncontrolled” insurance coverage disaster plaguing the state after a reporter confronted him concerning the problem.
The Florida insurance coverage market has been unstable for many years however has grown more and more risky lately. This month, Farmers Insurance coverage introduced that it might discontinue new protection for auto, dwelling and umbrella insurance policies, reportedly impacting 100,000 insurance policies. Farmers was the fourth main firm to go away Florida’s insurance coverage market prior to now 12 months, with many insurers citing the chance posed by hurricanes.
The pullouts have triggered criticism towards DeSantis, a 2024 presidential candidate, and a few specialists consider that the insurance coverage disaster may value the GOP in Florida within the subsequent presidential election.
A video tweeted by The Recount reveals a reporter confronting DeSantis concerning the insurance coverage disaster throughout a presidential marketing campaign cease in New Hampshire on Monday when the Florida governor unveiled his new “Declaration of Financial Independence” coverage proposal. The occasion got here per week after DeSantis introduced layoffs that eradicated greater than one-third of his marketing campaign employees.
“Why did not you see these crises coming forward of time and handle them earlier than they acquired so uncontrolled?” the reporter requested.
DeSantis refuted the reporter’s query: “That is a false premise. We did.”
DeSantis mentioned he wished the state legislature to behave sooner, however that lawmakers weren’t ready, although he mentioned they’ve been engaged on the insurance coverage disaster since 2021.
“We have been engaged on this for a variety of years,” he mentioned earlier than shifting the dialog towards inexpensive housing.
Newsweek reached out to DeSantis’ press secretary, Jeremy Redfern, by electronic mail for remark.
A lot of the state legislature’s efforts have targeted on shielding insurance coverage corporations from lawsuits, most of which have stemmed from hurricanes.
Fraudulent insurance coverage claims and the related litigation prices have crippled some corporations, inflicting seven residential-only insurers to turn into bancrupt. The litigation additionally has spurred excessive premiums and fewer choices from nationwide insurers.
“Most of the insurance coverage corporations in Florida are nonetheless saddled with the tailing litigation stemming from current hurricanes, most notably Hurricane Irma,” Redfern beforehand instructed Newsweek in an announcement. “However as a result of carried out reforms, we’re seeing some new corporations coming into the market.”
Regardless of the state’s efforts, Florida’s property insurance coverage premiums are among the many highest within the nation. By the top of 2022, common annual property insurance coverage premiums within the Sunshine State exceeded $4,200—triple the nationwide common.
Critics argue that DeSantis ought to’ve tried more durable to make insurance coverage extra inexpensive relatively than specializing in “tradition warfare” points, reminiscent of prohibiting training about sexual orientation or gender identification at school school rooms.
Former President Donald Trump additionally took a swipe at DeSantis concerning the insurance coverage disaster in a video posted to Reality Social this month. Trump, who’s vying for his second time period as president, holds a large lead over DeSantis and all different GOP contenders, in accordance with polls.
“The DeSanctimonious super-PAC, At all times Again Down, ought to focus extra on Florida property and auto insurance coverage, which has zoomed to highest-in-the-nation standing, and highest by far,” Trump mentioned within the video. “Come dwelling, Ron, the place you belong. Get these insurance coverage charges method down, as a result of what’s taking place in Florida should not occur anyplace.”
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