US Senate Budget Committee announces investigation into Citizens Insurance
The chairman of the Senate Budget Committee has opened an investigation into Florida’s Citizens Property Insurance Corp. and its ability to pay claims for “climate-related” disasters before seeking federal help.
A news release from U.S. Sen. Sheldon Whitehouse on Thursday, written on Senate Budget Committee letterhead, said the committee is seeking “documents and information about plans by Florida’s state-owned ‘insurer of last resort’ to address increased underwriting losses from climate-related extreme weather events and other disasters such as tropical cyclones, intense precipitation events, droughts, heatwaves, sea level rise, and wildfires.”
The probe, the release said, builds on two previous and ongoing investigations into the insurance industry’s response to climate change and the committee’s “growing concern about the economy-wide harms from widespread uninsurability.”
Citizens’ market share of multi-peril homeowner policies was approaching 20% in 2022 and had more than doubled since 2020, the release said.