The expansion of the public sector's involvement in Florida's residential property insurance market

After Hurricane Andrew, the residential property insurance market in Florida went from a highly competitive market to one of near collapse. In an attempt to provide a degree of stability, the state imposed strict regulations on insurers and greatly expanded its presence as a residential property insurer. Background is provided on the extent of public sector involvement and an attempt is made to measure the degree to which the state has entered the residential property insurance market. Coverage against windstorm losses is focused on and the state's proportion of the total insured exposure is compared to that of private insurers over the last 6 years. The findings indicate that despite substantial efforts by the Florida Department of Insurance, the state remains the dominant provider of windstorm insurance on residential property in the most exposed regions of Florida.