Florida CFO rips insurance companies for wokeness, ESG

As yet one more insurance coverage firm is pulling again from issuing insurance policies in Florida following a string of pure disasters, the state’s chief monetary officer has accused the business of pulling out not due to losses, however resulting from wokeness.

Jimmy Patronis, CFO of the state, lit into Farmers Insurance coverage for its plans to depart the state on CNBC lately, saying “if they might simply depart ESG [environmental, social, and corporate governance ] and put it away, and deal with the underside line, they might not have made this choice to depart the state of Florida with the tail between their legs.”

“I do say they’re too woke,” he added. “I do name them the Bud Gentle of the insurance coverage business. I do really feel like they’ve chaos of their C-suite.”

The accusations aren’t serving to the state grasp onto insurers, although. This week, AAA introduced it might not renew the auto or householders insurance policies of some prospects in Florida, making it the fourth insurer up to now yr to again away from the state. (Bankers Insurance coverage and Lexington Insurance coverage, a subsidiary of AIG, left Florida final yr.)

The entire firms which have diminished or eradicated their presence within the state have stated the string of native hurricanes, together with final yr’s catastrophic Hurricane Ian, have made it too costly to cowl residents of the state.

The shrinking variety of insurance coverage choices and the rising variety of disasters is hitting Floridians within the pockets. The common home-owner’s premium within the state prices over $4,000, in comparison with the U.S. common of $1,544, in keeping with E&E Information, a division of Politico that focuses on environmental and vitality information.

The businesses are leaving the state regardless of laws meant to encourage them to remain. Final yr, Florida created a $1 billion reinsurance fund and arrange legal guidelines meant to stop frivolous lawsuits.

Insurance coverage firms have additionally stepped again from California, with AIG, Allstate and State Farm not taking new prospects, as wildfires in that state have pushed up prices.

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