Nearly two years ago, when Florida lawmakers created a super-sized backup for private carriers in the state, the idea was simple: Do what it takes to cut property insurance rates.
Those who criticized the idea of expanding the Florida Hurricane Catastrophe Fund, the state-run alternative to private reinsurance, were fearful that if a big storm came it would mean huge assessments on insurance bills in order to pay off the claims.
What no one expected back in January 2007, however, was a monumental meltdown in the American financial system and a seizing up in the credit markets. The result? There is now no way the Cat Fund comes up with anywhere near the amount of money it would need to take care of a storm similar to Hurricane Katrina.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
