Solving the Insurance Crisis

For the past two years, a group of nine bi-partisan executives, four with extensive backgrounds in insurance, have researched, documented and examined the cause and solutions to the crisis. We have made presentations and had discussions with the offices of the Governor, CFO, OIR, FHCF, along with statewide and national associations, civic groups, news media, legislators, economists, financial analysts, actuaries and insurance executives, all contributing to our presentation of a solution to the mounting insurance problem.

We're moving on with a bold new solution. State and National leaders are paying attention. Move on with us at www.shieldourstate.org . We're leading the fight for economic security for all Floridians in the face of the next major hurricane. We're doing it for you, and need you to do it with us. Join our coalition now. 

Dan Montgomery

On our new website you will learn about a solution to the hurricane insurance crisis that will:

    • Provide a bold, new resolution of the Hurricane Insurance Crisis

    • Detail a new public/private partnership between the State and private insurers for hurricane risk

    • Outline a call to action. Action must be taken now, before it is too late to save our State and ourselves.

WHAT YOU HAVEN'T BEEN TOLD:

  • Though you have heard about the costs of hurricane losses in Florida, you haven't been told that the income to cover those losses is presently $10 billion per year, going into the pockets of the insurance carriers. Over 20 years, that equates to $200 billion, which could be going to pay for all hurricane losses.

  • Though you have been told that the Florida Hurricane Catastrophe Fund was reorganized to effect a 24% "savings" in insurance premiums (after a 400% increase), you haven't been told that the state couldn't effectively sell the bonds to back the program, that insurance companies purchasing the "cheap" reinsurance offered by the Florida Hurricane Catastrophe Fund then sought to raise their rates anyhow, and that when we're struck by a major hurricane season, you will still owe more money for the losses, over and above the higher premiums you are already paying.

  • Though you may not have noticed, on all current insurance premium statements (except for workers compensation and medical malpractice) there is a list of additional fees/taxes you are paying for one or more "assessments" for hurricane damage from prior years. This amounts to a Hurricane Tax, which is not even tax deductible. When we are struck again by a major hurricane season you will pay even more. Some Citizens property policy holders ( currently over 1.25 million of you) could pay over 60% in assessments on top of the premiums already being paid. Floridians could face an additional $100 Billion dollars in economic loss, in addition to the higher premiums being paid now, if we don't act.
The above facts are just the tip of an ugly iceberg. Getting to the facts has been a frustrating and very time-consuming exercise. There is little transparency today in how Hurricane Risk, the biggest economic obstacle Florida faces, is handled. We propose changing the current failed system with a feasible, viable, accountable and transparent program that will accomplish the three goals with which we started.

We encourage you to carefully read our proposal entitled "SOLVING THE CRISIS". It is not an easy read, as the problem and solutions are complex. However, it may be  among the most thoroughly researched and important documents available to you on the subject.

Daniel Montgomery, author of the plan.