Storm-Driven Insurer Insolvencies Stir State Actions: Explained

A recently passed Florida law to establish a $1 billion state-backed fund for property insurers highlights the nation’s sprawling insurance insolvency crisis as more regional carriers run out of reserves due to massive natural disaster-related claims.

The problem is particularly acute in Florida, where 15 property insurers have gone insolvent since 2020. But the issue is not unique to the Sunshine State. More than eight insurance companies in Louisiana went broke in the past year, according to the state Department of Insurance records. The last 17 months have seen more insurer insolvencies than in any other 17-month period across the ...