A resolution recognizing that Florida's insurance market is gravely stressed by climate risks.
Sponsors
Legislative Progress
In CommitteeMr. Whitehouse (for himself, Mr. Merkley, Mr. Markey, Mr. Van …
Summary
What This Bill Does
This Senate Resolution highlights the crisis in Florida's home insurance market caused by climate change and calls for federal action. It urges Fannie Mae and Freddie Mac to examine the rating practices of Demotech, an insurance rating agency that has given high ratings to insurers that frequently go bankrupt. It also asks the Treasury Department to assess whether Florida's state-backed insurer of last resort might need a federal bailout.
Who Benefits and How
Florida homeowners struggling with insurance premiums averaging $14,000 annually could benefit if this leads to reforms that stabilize the market or expose poorly-rated insurers. Federal taxpayers could benefit from early warning if Florida's state-backed insurer is at risk of needing a bailout. The housing market more broadly benefits from increased scrutiny of the insurance ratings that determine mortgage eligibility.
Who Bears the Burden and How
Demotech, the insurance rating agency, faces increased federal scrutiny of its practices - particularly its tendency to rate 98% of insurers "A" or above despite insolvency rates 30 times higher than competitors. Small Florida insurance companies that rely on Demotech ratings could face market disruption if their ratings are questioned. Citizens Property Insurance (Florida's state-backed insurer) faces federal examination of its financial stability.
Key Provisions
- Calls on Fannie Mae and Freddie Mac to scrutinize Demotech's insurance rating practices
- Directs Treasury's Federal Insurance Office to assess bailout risk for state-backed insurers
- Highlights that Florida insurers rated by Demotech are 30 times more likely to go insolvent than those rated by competitors
- Notes that Florida home insurance rates have risen 34% since late 2022, with average premiums now at $14,000 annually
- Raises concern about scenarios where Citizens Property Insurance losses could exceed its ability to pay claims
Important Context
This is a non-binding resolution - it expresses the Senate's position but does not have the force of law. It cannot compel Fannie Mae, Freddie Mac, or Treasury to take any action. However, it puts public pressure on these agencies and draws attention to systemic risks in Florida's insurance market.
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
A Senate Resolution calling on Fannie Mae, Freddie Mac, and the Treasury Department to scrutinize insurance rating practices and assess the risk of federal bailouts for state-backed insurers in Florida due to climate-related stress on the insurance market.
Policy Domains
Legislative Strategy
"Non-binding resolution to draw attention to climate-related insurance market instability in Florida and call for federal scrutiny of rating practices and bailout risks"
Likely Beneficiaries
- Florida homeowners facing high insurance premiums
- Mortgage holders seeking stable insurance coverage
- Taxpayers (by potentially avoiding federal bailouts)
Likely Burden Bearers
- Demotech (insurance rating agency subject to scrutiny)
- Small Florida insurance companies with questionable ratings
- Citizens Property Insurance (state-backed insurer of last resort)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "fannie_mae"
- → Federal National Mortgage Association (Fannie Mae)
- "freddie_mac"
- → Federal Home Loan Mortgage Corporation (Freddie Mac)
- "treasury_insurance_office"
- → Treasury Department's Federal Insurance Office
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology