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And anyone who the company covers might be legally obligated to rescue it.

The entire state of Florida may end up on the hook for damage caused by Hurricane Idalia.
That’s because the state-run insurance company, Citizens, has hundreds of thousands of policies in the area that could be hit by the storm. The most recent National Hurricane Center forecast projects the largest storm surge just north of the heavily populated Tampa Bay area in counties where Citizens has over half the market. The center is also expecting high winds from Tampa north all the way to the state’s Big Bend region, and unlike many private insurers in the state, Citizens is willing to cover wind damage.
Citizens is designed to be backup for Floridians if they can’t get private insurance for their homes and commercial property. As more and more insurance companies leave the state or go out of business, the company has massively expanded its reach over the state’s insurance market. In 2023, Citizens expects to have 1.7 million clients with $5.1 billion in premiums, compared to under 500,000 policyholders and $877 million in premiums in 2019, according to the company’s budget report.
“The difference for this storm of a few degrees is billions of dollars to Citizens,” Jeff Brandes, a former Florida state senator and president of the Florida Policy Project, told me. If it hits Pasco or Hernando counties head-on, Brandes said, the resulting insurance claims could exhaust Citizens’ current surplus and force it to issue “special assessments” — essentially one-time bills — on the state’s policyholders, including drivers. Citizens has over 50% of the property insurance market in the two counties north of Tampa Bay, according to Brandes, meaning that substantial storm damage could incur large losses for Citizens.
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Florida’s domestic property insurers have been losing money on underwriting — the difference between premiums collected and claims paid — since 2016, according to the state’s Office of Insurance Regulation. Earlier this year, another Florida insurer, United Property & Casualty Insurance Company, was declared insolvent. Farmers said in July that it would leave the state, one of several insurers to stop doing business there or go out of business entirely.
The combination of high risk from storms and an increasingly uncompetitive insurance market has led to some of the highest home insurance premiums in the nation. In Hillsborough County, homeowners pay an average premium of $2,752, while in Miami-Dade, it’s $5,665.
These high costs are driven by a combination of Florida’s, especially the coasts’, high risk of storm damage to property, and its uniquely litigious environment, which the Florida state government has tried to reform.
Citizens, however, is unlikely to face insolvency because it has an immense backstop: Floridians. If any of the company’s separate accounts are overdrawn (they’re scheduled to be combined early next year), the company can issue assessments to make up the difference.
“A devastating storm or series of smaller storms could cause a deficit in one or more account, leaving Citizens without enough money to pay all claims. If this happens, Florida law requires Citizens to charge a series of assessments until the deficit is paid,” according to the company.
The first level of assessments goes to Citizens policyholders, then a 2 percent surcharge on the premiums paid by private insurance policyholders for the company’s Coastal Account which provides coverage in specified high risk areas. The third level of assessments goes to both private and Citizens policyholders — including home and auto insurance policyholders — until the accounts are made solvent.
“Emergency Assessments can be up to 10% per account per year for each of Citizens’ three accounts. It is levied on both Citizens and non-Citizens policyholders for as many years as necessary until the deficit is resolved,” according to Citizens.
“They have this incredible assessment base,” Brandes told me. “If someone is paying $3,000 [in annual premiums], they can force you to write another for $1,200 or $1,300. Imagine people’s shock when that shows up at their door.”
Earlier this year, Citizens reported that “due to Hurricane Ian, Citizens’ financial resources have been significantly depleted,” and that its surplus had declined to just under $5 billion. This could mean that Florida policyholders could be on the hook for the state-run company: “If Florida is impacted by a storm or series of storms in 2023, Citizens will need to rely on its assessment capability and/or post‐event financing to meet its policyholder obligations,” Citizens said in the report.
“You see massive amount of socializing risk [in a state] that doesn’t want to talk about socialism,” Brandes said. “We’re the free state of Florida except for our largest liability — Citizens — which we are happy to subsidize.”
Read more about insurance:
Commercial Real Estate Is Getting Walloped By Climate Change
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A conversation with the Guardrails Alliance’s Shaunna Thomas.
This week’s Q&A is with Shaunna Thomas of the Democrat-allied super PAC Guardrails Alliance, which describes itself as “not anti-technology” but supportive of AI “rules, accountability, and a government that actually represents the public.” Part of that AI accountability they’re calling for is on data centers.
After the midterms, Guardrails Alliance sent a memorandum to all House and Senate Democratic offices arguing for AI and data center accountability to be a key part of their message and plans heading into the new Congress. Described as a “playbook for how to understand and channel anxieties about AI and data centers,” the document laid out “key narratives” that they said voters who care about these issues want to see reflected and echoed by their politics. They said the push against data centers could help Democrats build more lasting political power.
I reached out and asked if Thomas could explain further what all of this means to my readers. She kindly obliged.
The following conversation was lightly edited for clarity.
Let’s start with the elections. What were your takeaways when it came to what voters want to see on data centers?
I think the elections were a rebuke of the status quo on a number of fronts. We saw across the board that people are frustrated with what amounts to legalized corruption and the forcing without consent of new technology, and new infrastructure to support a technology that they didn’t ask for in ways that are harmful to their lives and the country.
What we saw in polling is that the data center backlash is one of the most bipartisan political issues of our time, driven by everything from noise pollution to rate hikes to Big Tech trying to steamroll state and local governments. Americans are sick and tired of the AI industry trying to control our lives by building data centers in our communities, which goes along with trying to control our data and who represents us in government. The AI industry was also trying to spend a lot on elections trying to control the outcome.
When we dig deeper on all that, it’s not just about elections. They’re seeing this unholy alliance between Big Tech and the Trump administration.
In the post-election analysis laid out in that memo, you explain these key narratives that you think Democrats should pick up against the tech sector. Can you explain how you developed these?
What we dug into during the primaries and the lead-up to the general election was questions in focus groups and polling with Republicans and Democrats about what was behind the frustration. Is this just about buildings they don’t want in their backyard or is this connected to AI and bigger picture concerns over who makes choices? About control? The data centers people were most opposed to were data centers specifically for AI, which was a really important indicator it was both/and.
We then started to talk to voters in Ohio and Iowa and Michigan about what they’d want to see in terms of changes, in terms of new leadership, how they would want to see this framed. What was appealing? We tested a number of frames and these key narratives are a compilation of that data. So for example, a key narrative says, The AI oligarchs and their political allies are wildly out of step with a supermajority of the public. There’s also sample messaging under it in the memo. And it’s a reflection of the sentiment and the tone and the language a lot of people used when they got into robust conversations about what they’re really concerned about or what they want to see their leaders doing differently.
Can you say more about these focus groups? And can you say more about what you saw in terms of bipartisan shared concern around not just data centers but these messages you’re bringing up?
I can tell you about some of the key findings of the focus groups we did in Michigan and Ohio and Iowa in August and September. People are generally open to the idea AI can have some benefit to their lives, and they’re open to using it personally. But everyone we talked to expressed some concern about the pace it was being developed. You can see technology having value but also see there’s no regulation in place or guardrails around the technology itself.
Most people we spoke to expressed concerns about how the technology has been affecting society and the environment — that came up a lot in data center conversations. People are also concerned about the role chatbots could have in their children’s lives, and that AI could replace teachers.
It’s also a lot of concern about and a lack of confidence in either government regulators or AI companies to properly regulate the technology. You saw more support for regulators at the state level and people deeply opposed to federal pre-emption, because they see more evidence of democracy working at the state level as opposed to the federal level.
People express mixed reviews about the specific policy solutions. What we’re seeing is people see AI as a vehicle for a small handful to amass more wealth and power. I don’t think we have had enough of a robust debate about how you deal with that problem.
So, on that point in particular, I want to drill down. What do we know about what voters want to see? What does accountability or guardrails look like to them?
First of all, there’s blanket support for federal regulations in general to deal with the way the technology is developed and deployed. We see a lot of clarity from voters about the fact they may not have a lot of confidence the federal government will step in. They want to see it.
When it comes to the economy, where there’s still broad public support is taxing billionaires and CEOs of these companies and raising the minimum wage and raising the social safety net. People’s interest in seeing that move forward has been growing in intensity.
On AI specifically, people don’t want to have a conversation about distribution of wealth without a conversation about distribution of power. They don’t want to be bribed to accept the acceleration of AI in their lives. They want to know that the power of those companies to do what they’re doing is going to be significantly limited and safety guardrails are put in place to keep us all safe from what the new technology is capable of.
I think once the safety conversation is step one. Step two is the conversation about how you distribute wealth from a technology built on other people’s labor and intellectual property.
On the concern about bribes, we’ve been reporting on Trump’s call for cash payments to communities to accept data centers. Are you telling me proposals like that might not be a good political strategy?
It was precisely because Trump was talking about it that we heard it brought up in focus groups, and how it was described was that voters may get some short term incentive to accept a technology they don’t trust is designed to help them fundamentally. They believe it is being deployed to more deeply consolidate power and wealth. And they don’t want that. When the president or a big AI company says they agree with it, it’ll have an impact on how the idea is perceived.
It has to also be coupled with a set of policies that are putting democratic governance over the technology itself before its deployment. People want to see technology isn’t going to continue to advance without guardrails.
Distinct from Trump’s data center dividend, some policymakers have suggested a “data dividend” — a distribution of wealth from the usage of AI products because they’re using people’s data. That’s more of what we’re talking about.
What do we know about what the public wants to see regarding data centers?
It’s important we recognize local leaders have had demands driven by their local communities. But as a structural matter, the public sees slowing down data centers as a mechanism for slowing down the project of AI generally. It remains an open question about how you do that.
There are federal policymakers working on a set of solutions that could create more space for people at the local level to be in the driver’s seat on when, how, or if data centers get built. I think we’ll see more proposals on that front.
So where do you think this conversation goes next?
I would expect the public to continue to make demands from policymakers and I would expect the Big Tech sector to continue down the path they’re going, which is, we were always Democrats and pro-regulation all the time. This will look like policies resembling always being okay with regulation but actually avoid putting checks on their power. And that’ll mean the public has even more at stake and the government has an even bigger obligation to make sure AI is deployed for public benefit as opposed to for the profits of a few companies and CEOs.
Plus more of the week’s biggest development fights.
1. New York City — We have a new must-watch offshore wind lawsuit with potential implications for the entire sector — and this time, it’s from lobstermen seeking damages.
2. Hinds County, Mississippi — The largest proposed solar farm in Mississippi is moving forward after an appeals court rejected arguments from aggrieved local residents that it had been improperly approved.
3. Dakota County, Minnesota — I’m scrutinizing a lawsuit against a data center developer centering on allegedly improper permitting of its cooling technology.
4. Polk County, Florida — Will the Sunshine State remain a challenging place for data centers after Ron DeSantis? A test case could reveal the future quite quickly.
Trump’s “data center dividend” appears to have backfired. Our latest poll results help explain why.
This year’s midterm elections called into question the efficacy of a push to pay local residents directly in exchange for building data centers.
Before the elections, I profiled the campaign for politicians to embrace the data center “dividend,” a policy idea modeled off Alaska’s Permanent Fund, which doles out checks to residents from profits off state oil, gas and mineral royalties. The Bitcoin Policy Institute, a tech policy think tank, was one of the first to trumpet the concept, but it was quickly taken up by President Donald Trump, who started raising it in speeches and on social media. “If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a ‘dividend,’” Trump posted to Truth Social on October 21.
Clearly the idea didn’t stop the bleeding. Democrats trounced Trump’s party in the midterms on a message that was heavy on attacks against data centers. But that still doesn’t explain why direct payments did so little to move the American public.
A Heatmap Pro poll conducted in early-to-mid October, right before the midterm elections, gives us an answer. As part of a broader survey of 2,500 registered voters, we asked about the idea — what we believe to be the first independent poll on direct payments for data centers by a news organization. We asked respondents whether there was a specific dollar amount they’d accept as a one-time cash payment in exchange for a data center being built near them. We also gave them the option to say no amount of money was sufficient.
Shockingly, a majority of people surveyed said they’d reject the data center cash payment in any amount. Among those who said they’d actually take the money, the median figure was around $10,000. The average was a whopping $146,000, skewed by the number of people who wrote $999,999, the maximum allowed by the survey.
This tracks what we’re seeing play out in communities where developers have tried this idea. In Hazle Township, Pennsylvania, NorthPoint — developer of an Amazon-linked data center project — proposed $10,000 cash payments to residents, no catch. Residents compared it to a bribe. In De Soto, Kansas, data center developer Digital Realty is offering annual $1,000 tax credits for a decade to neighbors of its proposed data center project. That proposal has been reportedly met with mixed reviews, too.
Clearly one of the problems here is that data centers not only face public perception issues around their local impacts, but are also more broadly associated with systemic inequality in the U.S. economy. The same Heatmap Pro survey found that a majority of voters believed AI companies have more control over the government than the oil and gas industry, pharmaceutical companies, banks, or other large industries.
Shaunna Thomas, executive director of Democratic-allied super PAC Guardrails Alliance, told me that during the campaign season they found that residents often associated the dividends with bribes, and that the president’s support for direct payments ultimately fed into voter sentiments about the tech sector controlling the government and society.
“People don’t want to have a conversation about distribution of wealth disconnected from a conversation about distribution of power,” Thomas said. “Specifically because Trump was saying that, we started hearing from voters in focus groups that it didn’t work for them. They’re hearing it as a bribe. They’re hearing they may get some sort of short-term economic or financial incentive to accept a technology they don’t trust is designed to help them.”
The Heatmap Pro survey results about cash payments ultimately reveal how emotionally driven the data center debate has become, said Sam Lyman of the Bitcoin Policy Institute. I asked Lyman to respond to the results because I thought they called into question the political effectiveness of the proposal we’d discussed months earlier. Lyman stipulated that he thinks the one-time payment nature of the question may have undermined the results, saying he prefers the dividends be paid out “in perpetuity.” But he acknowledged they also show “there’s still a lot of education to be done on data centers, what they do, and the impacts they have on the places where they’re built.”
“I think there’s a lot of Americans out there who have legitimate concerns that the future economy doesn’t include them. That’s something that needs to be addressed,” said Lyman, who said he laid part of the blame on what he called “irresponsible rhetoric” from AI industry executives about their technology’s impacts on society. “With data center dividends, the idea behind this policy is to help Americans understand the AI economy includes them. To give them a very material stake in that economy as it gets built out, especially in the rural communities that make data centers possible in the first place.”