TALLAHASSEE, Florida (Reuters) — Florida lawmakers were set to approve reforms yesterday to reduce skyrocketing state property insurance rates by doubling Florida’s financial exposure to catastrophic hurricane losses.Following severe rate hikes after eight big storms in 2004 and 2005, Florida officials say putting consumers on the hook for as much as $32 billion in possible hurricane damage would not affect Florida’s “AAA” bond rating while allowing insurers to reduce average premiums by up to 30 percent or more.

“These people have worked incredibly hard to do everything they can to make sure that we give relief to the people of Florida,” Governor Charlie Crist, a Republican, said on Sunday. “It looks like we’re on a path to do just that.”

The legislation was aimed at resolving a crisis — soaring homeowners insurance rates coupled with rapidly rising property taxes — that Crist and others had identified as a significant risk to Florida’s booming economy.

If approved as expected, the state would expand its hurricane reinsurance coverage by up to $16 billion, doubling to $32 billion the capacity of the Florida Hurricane Catastrophe Fund.

Under the plan, the state would offer insurance companies relatively inexpensive reinsurance. Companies would be required to pass those savings on to customers.

If a massive hurricane hits, owners of automobile, business and homeowners insurance policies would be assessed an additional premium to pay for the losses. That would also allow the state to issue bonds to pay losses, according to the plan.

Estimates say the scheme would lower most average rates from 5 percent to more than 30 percent, with coastal residents likely seeing greater cuts than inland customers.

While Republican lawmakers who control the state legislature lauded the measure, the state’s largest private property insurer, State Farm Florida Insurance Co., said the legislation would hamstring insurance companies and inhibit competition.