September 17, 2025, WTVT-TV, Fox 13 Tampa – Lisa Miller, the former deputy Florida insurance commissioner, said: “Back in the 2008 to 2015 timeframes, you didn’t hear of a hundred-degree weather on a consistent basis. I hate to be a pessimist, but I do not believe that we’re gonna get a good run—10 years of no storms or five years of no storms. We saw what happened last year… The government’s insurance company, another entity, call it what you want, shoves all of the risk into a public entity because the public are us, and we’ll end up paying for it at the end of the day.” (Original story location, including video version: https://www.fox13news.com/news/david-jolly-proposes-bold-state-run-insurance-plan-florida)
TALLAHASSEE, Fla. – David Jolly, a Democratic candidate for governor, is proposing a state catastrophic fund that would remove hurricane and natural disaster coverage from the private market.
Homeowners would still need private insurance for everything else — like fire or theft — but the state would handle storm losses. Jolly claims this could cut private premiums by about 60% as the most expensive risk (hurricanes) would no longer fall on private insurers.
The backstory:
Florida’s insurance crisis has been building for years.
- Litigation and fraud: State leaders blamed skyrocketing premiums partly on excessive lawsuits. In 2022, they made it harder and riskier to sue insurers. Critics said that hasn’t lowered costs for homeowners.
- Reinsurance costs: Insurance companies buy “insurance for insurers” called reinsurance. With Florida at the center of hurricane alley and climate risks rising, reinsurance costs soared — adding directly to homeowner bills.
- Market shrinkage: National carriers pulled out, leaving smaller firms with less cash on hand. Those firms had to buy more reinsurance, raising premiums even further.
- State subsidies: Lawmakers reluctantly created two state-backed reinsurance programs — RAP and FORA — offering $3 billion in cheaper coverage. But most of that money went unused, and $2.1 billion was returned to the general fund in 2025.
What is Jolly proposing?
Florida already has a Catastrophe Fund (cat fund) that helps insurers cover mid-range storm losses. Some experts said lowering the attachment point (letting companies tap that fund for smaller losses) could cut rates.
But, Jolly is proposing something very different.
He is calling for a new state catastrophic fund that would cover all natural disaster losses, as opposed to existing funds that serve as backup reinsurance for the private market. The state, not private insurers, would assume the risk of hurricanes, floods and other disasters.
Private insurers could sell policies for other perils, potentially slashing the cost of their premiums. Jolly compared the idea to Medicare and Medicaid, where the government steps in when private markets fail.
The other side: Insurance industry leaders oppose Jolly’s plan.
- Debt risk: They point to the National Flood Insurance Program, which is in substantial debt, as evidence that government-run coverage can quickly become unsustainable.
- California’s example: California’s FAIR Plan for wildfire coverage can be expensive and limited, requiring homeowners to buy multiple policies.
- Market impact: Industry representatives warn that stripping disaster coverage from private insurers could weaken the companies financially.
What they’re saying:
Jolly said:
“I think we need bold, dramatic property insurance reform. We need a state catastrophic fund to remove hurricane coverage out of the private market. You could cut private insurance by about 60%…
So, we have a hurricane fund in the state of Florida that’s basically a reinsurance fund. I’m talking about fully removing natural disaster perils from the private market, funding a state catastrophic fund… We have to recognize, when private markets fail, government has to step in. We do it in healthcare, right? We have Medicare and Medicaid and other programs because the healthcare market is just too expensive for many people, but we have to think about that in property insurance as well.”
Mark Friedlander with the Insurance Information Institute said:
“State-backed solutions for insurance are not an effective model… The private market is healthier. In fact, today, the Florida insurance market is in its strongest financial position in more than a decade. So why would we want to mess with that?… People unrealistically expect rates to go back. 2020 or earlier, that’s not possible. It’s impossible to turn the clock back and say, we’re gonna cut your bill in half. No matter what the solution is, it’s absolutely impossible.”
Gavin Magor with Weiss Ratings said:
“For the elderly in Florida, you’ve got Part D insurance for covering your drugs and you’ve got Medicare and you might even have a Medigap policy as well or even take Medicare Advantage. We’re used to multiple different sorts of policies. This isn’t a problem in my mind… It’s not going to be something where the entirety of Florida has a claim at any one point. So you’re actually diversifying the risk… Their reserves would grow as time went on, and ultimately that could well lead to reduced premiums for policyholders in the whole state. For those who are here and to attract new business and to attract more people to come here to help serve those businesses, it would actually be a really smart thing to do.”
Lisa Miller, the former deputy Florida insurance commissioner, said:
“Back in the 2008 to 2015 timeframes, you didn’t hear of a hundred-degree weather on a consistent basis. I hate to be a pessimist, but I do not believe that we’re gonna get a good run—10 years of no storms or five years of no storms. We saw what happened last year… The government’s insurance company, another entity, call it what you want, shoves all of the risk into a public entity because the public are us, and we’ll end up paying for it at the end of the day.”
Doug Quinn with the American Policyholder Association said:
“I will say it’s not a magic bullet… I would think the first thing before taking anything out of the hands of the private market would be effective regulation… The Office of Insurance Regulation and the Florida Division of Financial Services, who is the liquidation trustee for companies that go under, need to follow where all of this money has gone. Where are the billions upon billions of dollars?”
Birny Birnbaum with the Center for Economic Justice said:
“It’s good to see at least one politician taking the homeowner insurance crisis seriously and not gaslighting Florida consumers about so-called improvements in the market… Mr. Jolly is at least trying to speak truth to the people about what’s causing the problems. But if you really want to get at the causes of this, you’ve got to get insurance companies to put some skin in the game…
Why you should care:
Florida homeowners have been paying the highest property insurance premiums in the U.S. — often more than triple the national average. Jolly’s proposal is the first major reform idea this cycle to directly target the issue, setting the stage for insurance policy to become a centerpiece of Florida’s 2026 governor’s race.
What’s next:
Jolly is the first statewide candidate to propose a dramatic overhaul of the insurance system. Other candidates are expected to roll out their own plans in the coming months.
Whether Jolly’s idea gains traction may depend on how voters weigh the trade-off between potential savings and potential state debt.
©2025 FOX Television Stations
