Florida gave the insurers a break on re-insurance...hoping they’d lower their rates because of it and pass the savings along to the consumer, but they just used the windfall to buy more re-insurance from their parent company (at least that’s what State Farm did.)
If a company buys re-insurance from its parent company isn’t it failing to off set any of the liability for the parent company. I don’t see an advantage to the parent company of entering into such an arrangement.