The Florida Insurance Council released a backgrounder on the Florida Hurricane Catastrophe Fund's financial status that predicts dire consequences if immediate reforms are not made.
The Advisory Council to the Cat Fund acknowledged the fund would face a $10-$15 billion shortfall if called upon by a major hurricane to generate its full capacity of claim payouts, which is estimated to be about $28 billion.
The report repeatedly stresses that the Cat Fund cannot live up to the huge financial obligations established by the Florida Legislature, which expanded the program to an unprecedented $28 billion during a Jan. 2007 special legislative session. The Cat Fund's reinsurance program had been about $16 billion prior to 2007.
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
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
