Florida Hurricane Catastrophe Fund 2011 Proposed Rates and Rating Regions
Mar 24, 2011
The Florida Hurricane Catastrophe Fund (“FHCF”) has published proposed rates for 2011 as a result of the 2011 FHCF Premium Formula.
The rates are based on the 2011 Ratemaking Formula Report presented to the FHCF Advisory Council at its March 17, 2011 meeting, which can be accessed at the following hyperlink:
http://www.sbafla.com/fhcf/AdvisoryCouncil/2011MeetingMaterials/tabid/991/Default.aspx
Please note that these rates have not yet been approved by Florida’s State Board of Administration (“SBA”). The rates assume:
- Mitigation funding of $10 million
- No funding for financial product expense
- FHCF per-event retention of $7.369 billion (which drops to one-third on the third largest and subsequent event)
- FHCF limit level of $17 billion
In the 2011 Ratemaking Formula Report, the Mitigation Construction Rating Classification Factor Relativities can be found in Exhibit XIV, and the Temporary Increase in Coverage Limit Factors can be found in Exhibit XVII.
The FHCF has cautioned that no rates are final until approved by the SBA and until the 2011 Florida Legislative Session concludes and the State of Florida Appropriations Bill becomes law. Once the rates are final, they will be posted to the FHCF’s Web site; however, according to Section 215.555(5)(b), Florida Statutes, the SBA may, at any time, revise the Premium Formula. These rates are provided for informational purposes only. Although they are believed to be reliable, they are not guaranteed as to accuracy or completeness.
FHCF 2011 Proposed Rates (Excel Files):
Colodny Fass will monitor information from the FHCF for any changes.
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