Florida property catastrophe pricing are expected to decline by about 15 percent, according to "Prices Drop: Outlook for Florida Renewals on June 1, 2008," a briefing published by Guy Carpenter & Company LLC.

According to the briefing, the Florida Hurricane Catastrophe Fund (FHCF) continues to play an important part in most companies overall reinsurance program. Price decreases have been more dramatic for higher layers attaching above the FHCF due largely to reinsurers' preference for more remote exposures.

Firm order terms (FOTs) for lower layers sitting below the FHCF declined 7 percent to 10 percent relative to June 1, 2007 renewals. Middle layers usually placed alongside the FHCF saw decreases of 12 percent to 15 percent, while FOTs for higher layers dropped 18 percent to 25 percent relative to last year.

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