Florida Office of Insurance Regulation Publishes Annual Report of Aggregate Net Probable Maximum Losses, Financing Options and Potential Assessments Relating to Florida Hurricane Catastrophe Fund and Citizens Property Insurance Corporation
Feb 24, 2011
The Florida Office of Insurance Regulation has published its annual statutory report (“Report”) on aggregate net probable maximum losses, financing options and potential assessments of the Florida Hurricane Catastrophe Fund (“FHCF”) and Citizens Property Insurance Corporation (“Citizens”).
According to the Report, both Citizens and the FHCF have more resources to pay claims than in previous years, largely due to a consecutive five-year period in which no major hurricane has affected Florida. At the end of 2010, Citizens had an estimated combined policyholders’ surplus of $4.6 billion and the FHCF had an estimated fund balance of $5.9 billion.
The Report concludes by cautioning that Citizens exposure to catastrophic risk has grown and suggesting that strategic methods for encouraging the movement of capital and property insurance policies to the private market should be employed as quickly as possible to reduce the likelihood and magnitude of future assessments.
The Report is attached in PDF format and can also be viewed by clicking here.
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