MYTH: Creating government reinsurance catastrophe funds, like Florida’s fund, is a good way to help consumers lower their homeowners’ insurance costs.

REALITY: Florida’s reinsurance catastrophe fund benefits insurance companies by giving them taxpayer-backed reinsurance while providing little relief to consumers for the cost of homeowners insurance.

• Florida is only the state catastrophe fund writing reinsurance. (more...)
• State catastrophe funds concentrate risk instead of spreading risk, a fundamental principle of insurance. (more...)
• Government funds, like the Florida Hurricane Catastrophe Fund, do not reduce the vulnerability of people to natural catastrophes and are not a proactive, disaster planning approach. (more...)
• Experience with state catastrophe funds shows they are susceptible to the political suppression of rates. (more...)