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Market Implications of Public Policy Interventions: The Case of Florida's Property Insurance Market

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  • Lorilee A. Medders
  • Charles M. Nyce
  • J. Bradley Karl

Abstract

This article asserts that the market for property insurance, particularly homeowners insurance, in the State of Florida is experiencing failures, and that a combination of market problems, externalities, and interventions unique to Florida led to these failures. The authors provide evidence of market failures in the form of undesirable market outcomes, both over time and in comparison to other coastal states. Also, they provide a narrative description of the market events, problems, and policies preceding these adverse market developments and link the narrative to the evidence. Recommendations for a return to risk-based pricing and incentives for appropriate property mitigation are made.

Suggested Citation

  • Lorilee A. Medders & Charles M. Nyce & J. Bradley Karl, 2014. "Market Implications of Public Policy Interventions: The Case of Florida's Property Insurance Market," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(2), pages 183-214, September.
  • Handle: RePEc:bla:rmgtin:v:17:y:2014:i:2:p:183-214
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    File URL: http://hdl.handle.net/10.1111/rmir.12006
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