Thanks to a string of very good luck–namely, four consecutive years of calm hurricane seasons–the Florida property insurance market appears able to absorb the blow of a large storm in addition to a series of smaller events this year. But there remain "elephants in the room"–natural and man-made threats that put the Sunshine State's long-term stability at risk, industry officials warn.
Claims will likely get paid in 2010 if there is just one major hurricane and perhaps even a few additional smaller events, but that could leave the market short of funds to pay for another major catastrophic loss later this year or even in future years, these players ominously add.
"We'll have to find a way to recharge after a large event or its equivalent. There will be a big hole," said Jack Nicholson, chief operating officer of the Florida Hurricane Catastrophe Fund.
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