Insurance Reform and Risk Management: Don Brown’s 9 Guiding Principles to Enact Change (Yellow Book Road Podcast)

About the Guest:
Don Brown is a former Florida State Legislator who combines practical insurance industry experience with public policy expertise. His background as an insurance agency owner and legislator has given him unique insights into the challenges facing Florida’s insurance market. Currently, he serves as a consultant and author, focusing on building code improvements and insurance policy reform. His recent book draws from both his personal experiences and policy insights to provide guidance on effective change implementation.

Key Topics Discussed:

1. Rural Florida Background and Early Influences

• Upbringing in rural Florida
• Parental influence on perspective
• Foundation for Public Service Mindset

2. Insurance Industry Experience

•    Journey as an insurance agency owner
•    Impact of arbitrary legislative decisions on insurance rates
•    Motivation to enter politics
•    Understanding of risk distribution in Florida

3. Public Policy and problem solving

•    Identifying root causes vs. symptoms
•    Focus on homeowners insurance challenges
•    Importance of systemic solutions
•    Legislative approach to policy issues

4. Building Codes and Construction Standards

•    Concept of ‘code plus’
•    Implementation challenges
•    Benefits of enhanced building standards
•    Risk management implications

5. Risk Management Philosophy

•    Global risk distribution importance
•    Critique of local wind coverage proposals
•    Strategic approach to insurance solutions
•    Florida specific considerations

Resources Mentioned:

“Nine Guiding Principles to Enact Change” (Don Brown’s book)

Principal 1 – Pay for hurricane risk with private capital rather than public debt
Principal 2 – Free-market competition best ensures insurance availability and affordability
Principal 3 – Government intervention should be limited, cautious, and temporary
Principal 4 -People have a right to liver where they choose but shouldn’t expect other to subsidize risky                                choices
Principal 5 – Subsidized insurance should not cover investment or vacation properties
Principal 6 – Subsidies for primary residences should be temporary
Principal 7 – Government must act to protect citizens including: 1. Fortifying homes through building                                    codes and mitigation and 2. Direct subsidies for low-income or fixed-income homeowners at                             risk from rising costs
Principal 8 – Policy solutions must have comprehensive implementation plans that outline: 1                                                   Homeowners’ responsibilities, 2. Insurers’ obligations, and 3. Government’s role
Principal 9 – Consider tax relief and non-insurance solutions to reduce homeownership costs