Florida Hurricane Catastrophe Fund Posts 2015 Rates, Rating Regions and Premium Formula Report

Above:  Colodny Fass Partner Sandy Fay notes Florida Hurricane Catastrophe Fund Rates, Rating Regions and Premium Formula Report

 

The Florida Hurricane Catastrophe Fund (“FHCF”) posted its 2015 Rates, Rating Regions and Premium Formula Report today, April 20, 2015.

The posted rates represent the FHCF rates for 2015 as a result of the 2015 Premium Formula.  They are based on the 2015 FHCF Ratemaking Formula presented to the FHCF Advisory Council on March 24, 2015 and approved by Florida’s State Board of Administration (“SBA”) on April 14, 2015 (the same meeting at which the FHCF purchase of a risk transfer product not to exceed $1 billion and a pre-event debt financing not to exceed $1.2 billion was also approved).

The rates and the Premium Formula Report reflect the following additional costs and can be accessed by clicking on the hyperlinks below:

The rates assume:

• 0.94 percent exposure trend
• Mandatory cash build-up factor at 25 percent
• Modifications to the Mitigation Factors
• Pre-event 2013A bonds net expense
• Pre-event 2015 bonds net expense
• Reinsurance placement net expense
• FHCF per-event retention based on $6.898 billion
• FHCF limit of $17 billion

 

Of Note

No rates are final until the State of Florida Appropriations Bill becomes law.  However, according to Section 215.555(5)(b), F.S., the SBA may revise the FHCF Premium Formula at any time.

The FHCF emphasizes that these rates are provided for informational purposes only.  Although they are believed to be reliable, their accuracy or completeness is not guaranteed.

• FHCF 2015 APPROVED PREMIUM FORMULA REPORT
• FHCF 2015 APPROVED RATES (Excel File)
• FHCF 2015 APPROVED RATES (PDF file) 
  
• FHCF 2015 APPROVED RATING REGIONS (Excel file)
• FHCF 2015 APPROVED RATING REGIONS (PDF file)

 

 

Should you have any questions or comments, please contact Sandy P. Fay of Colodny Fass at SFay@ColodnyFass.com or +1 954 332 1762.

 

 

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