House of Cards: Florida and Property Insurance in the Age of Climate Change

America Adapts the Climate Change Podcast

In episode 210 of America Adapts, Dr. Carolyn Kousky, Associate Vice President for Economics and Policy at the Environmental Defense Fund, returns to discuss the climate challenges in Florida's property insurance market. She outlines how Florida faces significant economic risks due to hurricanes and other disasters, with 36 presidential disaster declarations since 2000. The episode delves into the complexities of the state's insurance system, focusing on three key programs: Citizens Property Insurance Corporation, the Florida Hurricane Catastrophe Fund, and the Florida Insurance Guarantee Association. Dr. Kousky addresses the reliance on smaller insurance companies; the critical role of reinsurance; and the impact of climate change on insurance pricing and availability. Doug and Carolyn have a broader conversation about the insanity of the Florida system of the existing property insurance market and how it could lead to price gouging for Florida citizens living in less at risk areas of the state. Also, the ‘hot take’ for this episode!

https://www.americaadapts.org/episodes/house-of-cards-florida-and-property-insurance-in-the-age-of-climate-change

Topics covered:

• Evolution of Florida's Property Insurance Approach
• State Programs Providing Insurance in Florida
• The Role of Reinsurers and Insurance Companies
• Transparency in Catastrophe Modeling in Florida
• Impact of Sea Level Rise on Florida's Insurance Market
• Cross-subsidies and Assessments in Florida's Insurance Market
• Climate Equity and Fair Pricing in Florida's Insurance Market
• Balancing Risk Reduction and Insurance Access
• Price gouging inland communities to subsidize coastal communities’ insurance rates
• Guest Recommendation: Jessica Dandridge, Water Collaborative of Greater New Orleans

Transcript of episode available here. Quotes from the episode:

Dr. Carolyn Kousky:

Politically, there's often an appetite to just ignore the risk and not address it because addressing it can be hard and might be costly, but failing to address it is also setting us up for much higher future costs.

…we need to view the crisis in our insurance markets as a signal for how high risk is, and that we have to invest aggressively and quickly in much more climate adaptation in order to lower that risk to a manageable level…

Doug Parsons:

Climate change is like gravity. … there's no arguing with it. It's just going to happen. …but you are living in Gainesville, you're being responsible, you haven't gone to the coast. Isn't raising that person's rate a form of price gouging because you don't have as much risk and yet they're raising your rate , that's price gouging.

Previous Episodes with Dr. Carolyn Kousky

New Tools for a More Resilient Future with Dr. Carolyn Kousky

Risky Business: Adapting Insurance Markets to Wildfire and Flood Risk with Dr. Carolyn Kousky

Check out the America Adapts Media Kit here!

Subscribe to the America Adapts newsletter here.

Links in this episode:

The Evolution of Florida’s Public-Private Approach to Property Insurance https://floridapolicyproject.com/wp-content/uploads/2024/05/FINAL_Florida-Insurance-Market-Report.pdf

https://earth.org/why-we-need-to-fix-disaster-insurance-markets/

https://www.edf.org/people/carolyn-kousky

Donate to America Adapts

Listen to America Adapts on your favorite app here!

Facebook, Linkedin and Twitter: https://www.facebook.com/americaadapts/ @usaadapts https://www.linkedin.com/in/doug-parsons-america-adapts/ Donate to America Adapts

Follow on Apple Podcasts Follow on Android

Doug Parsons and Speaking Opportunities: If you are interested in having Doug speak at corporate and conference events, sharing his unique, expert perspective on adaptation in an entertaining and informative way, more information can be found here!

Now on Spotify! List of Previous Guests on America Adapts

Follow/listen to podcast on Apple Podcasts.

Donate to America Adapts, we are now a tax deductible charitable organization!

Federal Reserve Bank of San Francisco

Strategies to Address Climate Change Risk in Low- and Moderate-income Communities - Volume 14, Issue 1 https://www.frbsf.org/community-development/publications/community-development-investment-review/2019/october/strategies-to-address-climate-change-low-moderate-income-communities/

Podcasts in the Classroom – Discussion guides now available for the latest episode of America Adapts. These guides can be used by educators at all levels. Check them out here! The 10 Best Sustainability Podcasts for Environmental Business Leadershttps://us.anteagroup.com/news-events/blog/10-best-sustainability-podcasts-environmental-business-leaders

The best climate change podcasts on The Climate Advisorhttp://theclimateadvisor.com/the-best-climate-change-podcasts/

7 podcasts to learn more about climate change and how to fight ithttps://kinder.world/articles/you/7-podcasts-to-learn-more-about-climate-change-and-how-to-fight-it-19813 Directions on how to listen to America Adapts on Amazon Alexa

https://youtu.be/949R8CRpUYU

America Adapts also has its own app for your listening pleasure! Just visit the App store on Apple or Google Play on Android and search “America Adapts.”

Join the climate change adaptation movement by supporting America Adapts! Please consider supporting this podcast by donating through America Adapts fiscal sponsor, the Social Good Fund. All donations are now tax deductible!

For more information on this podcast, visit the website at http://www.americaadapts.org and don't forget to subscribe to this podcast on Apple Podcasts.

Podcast Music produce by Richard Haitz Productions Write a review on Apple Podcasts ! America Adapts on Facebook! Join the America Adapts Facebook Community Group. Check us out, we’re also on YouTube! Executive Producer Dr. Jesse Keenan Subscribe to America Adapts on Apple Podcasts Doug can be contacted at americaadapts @ g mail . com