Bill > SRes556

This resolution recognizes the severe stress in Florida's insurance market due to climate risks, highlighting several critical issues. The document notes that climate change poses a major risk to Florida, causing many home insurers to face potential insolvency, with major insurers leaving the market and smaller, less stable insurers taking their place. The resolution draws attention to Demotech, an insurance rating agency used by many smaller Florida insurers, which rates 98 percent of insurers as "A" or above, yet these insurers are 30 times more likely to become insolvent compared to those rated by other companies. Homeowners are experiencing significant financial strain, with average annual insurance premiums reaching $14,000 and rates increasing 34 percent since late 2022. The resolution also points out potential systemic risks, such as the state-backed Citizens Property Insurance potentially being unable to cover catastrophic losses and the implications for the broader housing market. Consequently, the resolution calls on Fannie Mae, Freddie Mac, and the Treasury Department's insurance office to investigate Demotech's rating practices and assess the likelihood of state-backed insurers requiring a federal bailout.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-resolution/556/all-info