CFO Sink Outlines FHCF Restructuring Plan
Oct 9, 2007
Florida’s Chief Financial Officer, Alex Sink, today held a press conference at which she announced her plan to reform the Florida Hurricane Catastrophe Fund (“FHCF”) by moving its management to be under the oversight of the Governor and Cabinet. The plan would also reduce the amount of assessments that could be due under the current FHCF structure.
Specifically, the plan would move the management of the FHCF to the Governor and Cabinet, and give the Governor and Cabinet the ability to set the reinsurance levels and pricing of the FHCF optional coverage (TICL layer). The CFO plans to ask the Senate President and Speaker of the House to add consideration of her proposal to the upcoming special session call. If this proposal is approved before the end of the month, the FHCF will begin re-assessing the pricing and levels of reinsurance for the 2008 hurricane season.
The CFO stated her proposal is intended to provide more flexibility for the FHCF and that the Cabinet would be the more appropriate body to provide this flexibility because it meets frequently throughout the year. The CFO stated that she believes that the FHCF should be able to quickly react and take advantage of market shifts. The CFO also stated that she believes the Cabinet and Legislature can work together when considering proposals made by the FHCF.
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