Insurance companies reduce risk by buying reinsurance to insure themselves against catastrophic losses. Reinsurance for insurance companies is relatively cheap but more than coastal homeowners can afford. New money is needed for realistic loss projections.
Coastal homeowners have a potential source of new money available to them: state revenues from offshore drilling. Awkward of course because the state holds the rights to the money. Since the pristine seaview affects the coastal residents primarily, the state could allow drilling and use the procedes to buy down reinsurance rates. Residents lose some of their view but benefit by lower insurance rates.
The days of having it all are over.
I'm not talking about "less competition", I'm talking NO competition, at all. The State of Florida would essentially become "self-insured" and de-facto owners of the building and supply industry.....