Damning warning issued over Florida insurance market

The major private home insurers that have left Florida in the past couple of years are being replaced by smaller, lower-quality companies whose financial stability ratings wouldn't meet the minimum requirements set by government guidelines, according to a recent study. The study, led by researchers at Harvard University, Columbia University and the Federal Reserve Board, is yet to be peer-reviewed but was published on SSRN, a website for scholarly papers, in December. It states that new insurers which are replacing the traditional ones in high-risk areas are "less diversified, hold...