If a 1-in-250-year storm were to hit Florida, policyholder assessments to support the state's hurricane catastrophe fund and its insurer of last resort could total $53 billion, a reinsurance broker reported this week.
Paul Kneuer, senior vice president and chief reinsurance strategist for Holborn Corp., a New York-based reinsurance broker, one of the authors of a new white paper on the Florida property insurance market, said the $53 billion figure represents the burden of such a storm on Florida homeowners--and ultimately, perhaps on the federal government.
Mr. Kneuer said that one key step in developing the assessment estimate was to calculate the market share of the state's residual market insurer, Citizens Property Insurance Company.
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