Florida Commission on Hurricane Loss Projection Methodology Meeting Report: July 28

The Florida Commission on Hurricane Loss Projection Methodology (“Commission”) held a meeting on July 28, 2008 to discuss and receive input on the expected impact of recent legislation upon the Commission.  Representative Don Brown (R-DeFuniak Springs) was present at the meeting to testify about provisions of Committee Substitute for Committee Substitute for Senate Bill 2860 that impacts some of the Commission’s duties. 
 
The Commission focused its questions on whether SB 2860 requires reinsurers to use only Commission-approved models and on the type of standards the Commission is required to create regarding insurers’ probable maximum losses. In responding to these questions Representative Brown told the Commission that the legislation was intended to apply only to primary insurers, and that the new law should not be interpreted to require reinsurers to use models approved by the Commission.  Representative Brown also explained to the Commission that the legislation requires the Commission to consider and evaluate different actuarial standards used by insurers to establish their probable maximum loss, as well as to adopt standards regarding actuarial methods found to be most reliable by the Commission.
 
Additionally, although not on the agenda, the Commission members held extensive conversations on the aspects of short and medium-term models, on which it did not come to any agreement.

Monday’s meeting was the first of three scheduled Commission meetings during the next month.  The remaining two meetings are scheduled for August 12-13: to discuss the 2008 standards and procedures and other general business of the Commission.  To view the meeting notice, click here. 

A representative of Colodny Fass will attend the remaining meetings and provide a report on the proceedings.

 

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

 

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