Doubling Up on Risk - Citizens & SBA

To those of us in the insurance business, an industry built on assessing and transferring risk, the actions of Citizens Insurance in Florida (see here for background) seem a little unusual for an underwriting operation. Not only does it appear that Citizens has taken significant catastrophic exposure with limited resources and little diversification, but now it appears that they have doubled their risk by concentrating their assets in the governmental pool run by the SBA (the State Board of Administration)....