Florida Legislature’s Office of Program Policy Analysis and Government Accountability (OPPAGA) Report: Steps Could Be Taken to Reduce the Public Hurricane Loss Projection Model’s Reliance on State Funding
Dec 30, 2011
The Florida Legislature’s Office of Program Policy Analysis and Government Accountability (“OPPAGA”) issued a report today, December 30, 2011, entitled “Steps Could Be Taken to Reduce the Public Hurricane Loss Projection Model’s Reliance on State Funding.” To view the complete report, click here.
OPPAGA reports that the Florida Office of Insurance Regulation (“OIR”) is the Florida Public Hurricane Loss Projection Model’s (“Model”) primary user. The Model, which was developed by Florida International University (“FIU”) and its partners, provides the OIR with an independent benchmark tool for reviewing the reasonableness of rates proposed in insurer filings.
The Model’s operation and maintenance is supported primarily by State funds. In Fiscal Year 2010-2011, FIU received $588,409 from the OIR, most of which is used to support the Model’s routine operation and maintenance. During the same period, 12 private insurers paid FIU a total of $129,338 to use the Model. However, these fees only covered the cost associated with providing the requested services.
The direct expenditures for operating, maintaining and updating the Model were $723,937 in Fiscal Year 2010-2011.
The OPPAGA report also suggests that, to further increase private funding for the Model, FIU could market or enhance it to make it more useful to private insurers. The Florida Legislature could also consider several options for financing the Model, such as discontinuing or reducing state funding as it is offset by increasing fees paid by insurers, or continue the current funding arrangement.
Should you have any questions or comments, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an email to Brooke Ellis at bellis@cftlaw.com.