Summary
Put all your eggs in one basket? That's what a veto by Governor Christ would do to Florida's hurricane insurance market. His veto would serve to concentrate risk, putting the liability into fewer hands. These "hands" are the now fewer remaining private insurance firms and the citizens of Florida. Level the playing field? Not Christ's veto. Those more at risk (coastal dwellers) will be subsidized by those less at risk (central Floridians). This is a tax on the less wealthy to support the opulent homes of the wealthy coastal inhabitants.
Analysis
Predicting the cost and timing of hurricane damage is akin to predicting where a drunk walks down a road. On average, he's (safely) in the middle of the road. However, he does stagger from side to side and unpredictably steps into traffic - and is it's highly likely he is killed. Governor Christ is putting the finances of the state of Florida into the hands of the next several hurricanes, betting that on average their timing and damage will not bankrupt the state - until after he leaves office. Heads he wins, tails the state loses.
Insurance firms that have a larger dollar percentage of central properties insured relative to coastal properties are more likely to remain solvent than firms whose book of insurance is reversed. Banks, bond holders and investors should demand and then peruse the book of business an insurance firm has before any lending or investing takes place. As for State Farm, the veto could slow its growth rate, but it will not damage its long term prospects.
Any reinsurance should also be closely examined. An insurance firm may have sold off some layers of risk, but if the same reinsurance firm is taking similar risks, like the last 20% of coastal risk from five insurance firms, that reinsurance may worthless.
