This report was co-authored by @moira.bsky.social @ruthygourevitch.bsky.social, Tanaya Srini and me, and a joint effort of @cplusc.bsky.social and @climatecabinet.org, and had support from the @insurancefairness.bsky.social. Honestly one of the most inspiring groups I've been part of.🔥

The design of these insurers of last resort is a policy decision; that means it can be changed.
We recommend that FAIR Plans be improved to achieve the objectives of accessible and affordable insurance, and to better address the climate crisis. See the report for a full list of our recommendations:

Unfortunately, this is bad insurance design:
1) concentration of risk
- adverse selection, w riskiest policies
- geographic concentration, esp in Beach/Wind plans
2) no risk reduction
- linked to risky financial structures that require bailouts from all policyholders in the state (see CA)

They are designed to foster the private market through bylaws around non-competition, rate-setting, industry governance and depopulation (forceful transference of policies back to the private market).

FAIR plans began as a response to 1968 withdrawal of insurers from urban downtowns, as temporary fixes to lure companies back into abandoned markets. They were fundamentally designed for temporary gaps in the private market, not an intensifying climate crisis.

And yet while these are often presented as "state-run" insurers, FAIR plans are in fact most often private syndicate pools or other private associations, headed almost entirely by private insurance company execs. 86% of these plans are run by majority-industry reps.

As premiums rise and insurers refuse to offer new or renew existing policies, homeowners and businesses are increasingly turning to insurers of last resort. They're a big deal! 35 states have some version of theses insurers, and in 2024, they offered 3.3 MILLION policies, w coverage of $1 trillion