The Cambo Ferry Law Firm has issued a warning that House Bill 1551 (HB 1551) could lead to the collapse of Florida's private insurance market, potentially resulting in a reliance on inefficient state-run insurance systems. This announcement was made in a White Paper released on March 19.
According to the firm, if HB 1551 is enacted, it could reverse the stabilization progress achieved in Florida’s private property insurance market since 2022. The firm highlighted increased confidence among reinsurers and insurers following reforms aimed at reducing litigation and financial risk. Disruption to this progress, they argue, would jeopardize private sector participation and threaten the viability of affordable coverage options.
The White Paper states, "If the private insurance market collapses again, Florida will have one option left: state-run insurance… To get an idea of what that would look like, all one has to do is look at the federally controlled flood program, the National Flood Insurance Program, which is underfunded, inefficient, and largely ineffective." The firm suggests that HB 1551 could lead to a return to a state-dominated insurance model similar to Citizens Property Insurance Corporation, originally intended as a last resort. This shift would reduce competition and increase the financial burden on taxpayers.
A report from the Congressional Research Service in 2023 highlights ongoing issues with the National Flood Insurance Program (NFIP), including a $20.5 billion debt balance and annual premium shortfalls. The report describes the NFIP as "financially unsustainable," with outdated risk models and reliance on federal borrowing. Cambo Ferry cites these shortcomings as a cautionary example of potential outcomes if Florida reverts to state-run coverage.
Cambo Ferry Law Firm is based in Florida and specializes in insurance defense, legislative impact analysis, and market regulation. Known for its expertise in insurance litigation, the firm advises carriers and stakeholders on compliance, strategy, and reform impacts. It actively participates in state policy discussions to support long-term market stability and consumer access to reliable coverage.