Florida Governor DeSantis: “Knock on wood” we won’t have any more big storms – ever.
Also DeSantis: they’re pricing in all these things that very well may not happen.”
In other words, the very definition of insurance.
The Governor continues to raise questions about the state insurance company’s ability to weather a significant event.
Gov. Ron DeSantis is telling the nation that people in his state shouldn’t rely on the state-run insurer of last resort, raising new questions about Citizens Property Insurance ahead of what is expected to be an active hurricane season.
“It is not solvent and we can’t have millions of people on that because if a storm hits, it’s going to cause problems for the state,” the second-term Republican Governor said on CNBC’s “Last Call.”
The Governor’s comments are particularly interesting as they were in the middle of a rumination about private insurers bringing new capital into the state, in which he claimed that “about 30% of those policies from Citizens” taken out by “new private insurance (companies) will actually be able to offer lower rates to those people.” That suggests roughly 70% of people are paying more since the take out of Citizens’ policies.
Scrutiny on Citizens has come from Washington in recent months.
The U.S. Senate Budget Committee has probed the DeSantis administration about the company’s ability to handle underwriting losses, including the question of whether the state insurer might need a federal bailout.
“In light of the state’s acknowledgement of Citizens’ potential insolvency and the likelihood that it would be both politically and economically unfeasible for Citizens to attempt to recoup tens of billions of dollars in losses from policyholders across Florida, the Committee is concerned that Citizens and the state of Florida would turn to the federal government to bail them out. Given the potential magnitude of Citizens’ losses, such a bailout request could put substantial strain on the federal budget,” wrote Chairman Sheldon Whitehouse, a Democrat from Rhode Island.
DeSantis has warned about Citizens’ bloat in the past. He noted in 2022 that Citizens was “unfortunately undercapitalized” and that the company could go “belly up” if it actually had to weather a major storm.
Questionable messaging isn’t just a thing of the past though. DeSantis, on successive days last year, blamed the Legislature for not implementing insurance reforms he wanted, then refused to say what those reforms were when asked directly.
The Governor also made news during a 2023 radio interview with a Boston host, when he suggested homeowners should “knock on wood” and hope the state didn’t get hit by a storm.
DeSantis has also previously blamed high insurance rates on cultural issues.
“But I think I’m concerned about this ESG, I’m concerned about them trying to say climate change and everything because that’s going to make some of these things very, very expensive if they’re pricing in all these things that very well may not happen.”
“…if they’re pricing in all these things that very well may not happen.”
Hey Gov, have I got a deal for you!
Let’s put money down on whether whether the scientists have overpredicted the power of future storms. You can even have other down-players and denialists (like Ben Shapiro) take advantage of this offer, too.
Let’s talk.