“Developer Socialism”

This is another take on a topic covered in some earlier postings, but it is worth considering again.  See: Subsidized insurance is developer socialism

Government has become the insurer of last resort precisely because – unlike politicians – free market insurers are not in denial about climate change. Allstate once insured more than a million homes in Florida. It now covers about 400,000, and reportedly plans to reduce that to 100,000.

Private insurers see little profit in paying out damages to rebuild oceanfront properties that are almost certain to be ravaged anew.

“With the federal government taking on such an enormous share of the financial burden and nearly all recovery responsibility, there is little incentive for disaster-prone states to take action to reduce risk,” The SmarterSafer coalition, whose members include some of the world’s largest insurance companies, stated in 2015.

This notion that the feds will keep picking up the tab for damages in disaster-prone areas that should not have been developed in the first place, prompted FEMA Director (and former Florida emergency disaster czar) Craig Fugate to go off on a remarkably candid rant in a recent interview with Blomberg News.

One thought on ““Developer Socialism”

  1. I’m afraid the author isn’t paying attention to the right climate change – it was political, not weather. Florida was not allowing insurers to charge the correct risk premium for EXISTING hazards (no new ones needed!). After the hurricanes of 2004-5, many insurers went under and others weren’t making a profit. It was then that many/most insurers pulled out. This is 10-years-old news masquerading as a response to climate change.

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