Windstorm insurance is bleeding Floridians dry. Call a legislative special session, Gov. DeSantis
Iurge Florida Gov. Ron DeSantis to call a special session to address Florida’s skyrocketing windstorm insurance rates. The issue touches millions of Floridians, yet it was wholly ignored during this last legislative session. While there hasn’t been a major hurricane in Florida in years, somehow insurers continue to persuade lawmakers and regulators that double-digit increases are warranted. Homeowners (and renters who feel the pass-through cost of insurance) are feeling the pain of massive increases. For seniors on fixed incomes, these costs are as unexpected as they are unaffordable.
Ironically, more Floridians will likely lose their homes from excessive windstorm insurance rates than from the windstorms themselves.
If the governor takes action, he shouldn’t simply follow the playbook of the insurance industry, which tends to want to increase rates and reduce coverage. Other measures, that are pro-consumer, could deliver immediate relief.
For instance, the Florida Hurricane Catastrophe Fund provides statemanaged reinsurance that is sold to insurance companies at a discount because the fund is tax-exempt and makes no profit. But it can only be accessed by insurers when windstorm losses surpass $8 billion. So, property insurers must buy very expensive reinsurance from overseas, private markets, to cover much of the risk they have insured. That makes no sense today, because the CAT Fund’s current balance and borrowing capacity exceeds a whopping $15 billion.
As Sen. Jeff Brandes, R-St. Petersburg, suggested, why not make the reinsurance available to insurers at a much lower loss level? Reducing this “loss trigger” to, say, under $5 billion would provide meaningful savings to Florida’s property insurers, resulting in lower premiums for consumers.
We could also eliminate, as some have suggested, the rapid cash buildup charge that was put in place a decade ago when the CAT Fund needed to grow. Given the current size of the fund, it is an unnecessary tax on Floridians. Eliminating that requirement would provide a direct discount to consumers.
Regarding Citizens Insurance, the governor should refrain from forcing consumers out of the Citizens risk pool. For many of them, the private market will result in premiums that exceed mortgage payments.
There are plenty of ideas, and everything needs to be on the table. But it requires action.
Too much time and attention were spent this legislative session fomenting culture wars that have little to do with Floridians’ well-being and prosperity. Many would appreciate some attention to issues that matter.
This is clearly one where Floridians need immediate help. A special legislative session to reduce windstorm insurance premiums could provide it.
Dan Gelber is mayor of Miami Beach.
Two years ago, our nation faced the greatest education crisis in the modern era. As the pandemic upended the lives of teachers, students and families, millions of children missed out on learning, falling months behind especially in reading and mathematics. McKinsey reported even greater learning losses for minority or low-income students.
Such enormous setbacks demand bold solutions, which is why we’re excited about a new education partnership between the city of Miami and Miami Dade College. These partners are preparing to launch Miami Tech Charter School, featuring careerfocused programs that will accelerate students into in-demand jobs.
Why tech? Miami has now grown to be a major tech hub and, as a region, South Florida is the fastest growing tech hub in the nation. In December, more than 35 businesses listed more than 2,700 open positions as part of the Venture Miami Tech Hiring Fair. And, the average tech salary increased by more than 11.4%.
Growth like that can only be sustained with a growing pipeline of talent.
Miami Tech Charter School responds directly to that need, enabling every one of its students to graduate high school with a two-year college degree — for free. Through the partnership with Miami Dade College, these students will have access to advanced courses that lead to the most in-demand tech jobs, including computer science, cybersecurity, business intelligence/data analytics, cloud computing and others.
The idea for charter schools is not new. In fact, it’s been a quarter century since Miami was home to Florida’s first one. Today, 44 states, Washington, D.C., Puerto Rico and Guam all offer their students access to charter schools.
Florida’s education landscape continues to be prime territory for education leadership. We believe in new ideas, bold solutions and unprecedented opportunities for students. This willingness to embrace innovation is rooted deeply in the growing tech industry that’s taken hold of our community.
Just as a start-up can begin with an idea, Miami Tech Charter School started as a seed of inspiration and landed in very fertile Florida soil. It’s been parent-led, fed by local leaders who support education opportunity and by community leaders who face local problems with bold solutions. It’s also fed by a growing number of families who not only demand, but also urgently need, high-quality education for their children to ensure they prosper in a thriving tech economy.
We challenge leaders across the country, mayors and governors alike, to emerge from this pandemic by challenging themselves and seeking bolder solutions for the students and families you serve. There are three ways to do this:
First, listen to your community. This includes parents and entrepreneurs, because the future of education and the way we prepare students for success require a student-centered approach that looks beyond the status quo and at the career opportunities of tomorrow. Listening to your community, parents, families, and educators always pays off.
Second, good leaders start by casting a vision for the future, and great leaders have the intentionality to see the vision through. Miami’s tech industry isn’t an accident — it is purposedriven and it’s a result of a collaborative, intentional, community-wide effort to invest and build the tech industry in Florida, and it’s working.
Third, seek out new partners. We are lucky to have Miami
Dade College led by President Madeline Pumariega. But whether it’s a local college or university, or business leader, if you want unconventional outcomes, look for unlikely or unconventional partners.
We’re grateful we have that framework here in Miami and throughout Florida; and we are certain that there are exciting new opportunities to embrace across our country.
Mayor Francis X. Suarez is mayor of Miami. He is president of the U.S. Conference of Mayors. Jeb Bush was the 43rd governor of Florida. He is chairman and founder of ExcelinEd.