Federal Investigation and Policy Shifts: The Decline of Citizens Insurance

The U.S. Senate Budget Committee has launched an investigation into Florida's Citizens Property Insurance Corp. regarding its ability to pay claims for climate-related disasters before seeking federal assistance. The committee is seeking documents and information about the state-owned insurer's plans to address increased underwriting losses from climate-related extreme weather events. The investigation builds on previous inquiries into the insurance industry's response to climate change and concerns about the economic consequences of widespread uninsurability. The committee is particularly concerned about Florida's exposure to climate-related property losses, Citizens' expanding market share, and the potential for a federal bailout.