Florida Senate Committee on Banking and Insurance: Hurricane Andrew Would Cost $14 Billion Today, 2004-2005 Storms Would Incur $7.6 Billion
Sep 1, 2011
In its Interim Issue Brief (“Brief”) on Citizens Property Insurance Corporation (“Citizens”) released today, September 1, 2011, the Florida Senate Committee on Banking and Insurance (“Committee”) estimated that, if it were to strike Florida today, Hurricane Andrew would incur a total of $14.651 billion in insured losses. Further, the Committee reported that, if the storms of the 2004 and 2005 seasons were to have occurred instead in 2011 and 2012, Citizens’ estimated combined claims costs would be approximately $7.649 billion. Resulting projected surcharges and assessments for each scenario are similar.
In preparing the Brief, the Committee examined Citizens’ current assets available to meet its potential obligations and the amount of claims it could currently absorb without the need to issue bonds. To do so, it compiled a quantitative analysis of all capital sources available to Citizens necessary to meet its obligations and further analyzed the potential effects on all policyholders in Florida. Comments were also solicited from Citizens, the Florida Office of Insurance Regulation, industry groups and policyholders
The Brief is attached in PDF format and can also be viewed by clicking here. To access the 2011-2012 Senate Interim Work Plan, click here (the Citizens project is on Page 18 of the PDF, Page 9 of the actual report).
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