Hurricane Matthew to test wind, flood insurance in Florida and beyond

[WorldNews]

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By David Morgan WASHINGTON (Reuters) - Hurricane Matthew, churning off the Florida coast, could present two major tests for the U.S. insurance industry - one for an unusual wind coverage market formed in recent years in Florida, and another for the troubled U.S. flood insurance program. In an era of rising seas, catastrophic damage from Matthew would likely revive questions about the extent to which American taxpayers should subsidize insurance for coastal communities, an issue that Washington has not adequately tackled, insurance industry experts said on Friday. The first hurricane to threaten a direct hit on Florida since Hurricane Wilma in 2005, Matthew also raises questions about small, specialist insurers that have come to dominate the Florida homeowner market in the past decade.

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