FPCA Homeowners Division – Additional Information Discussed at Today’s Meeting
Aug 10, 2012
FPCA Homeowners Division Members:
As discussed on the conference call this morning, we received the following information from Guy Carpenter:
“We would estimate the following for private market reinsurance in 2011 and 2012. These estimates are for capacity making up companies main private market catastrophe excess of loss occurrence programs. So reinstatement premium protections, second and subsequent coverts etc. are not included nor do these [figures] include the FHCF that each company is required to purchase.
Fl. Domestic Carriers 2011 – $3.9b; 2012 – $5.2b
Citizens 2011 – $0.6b; 2012 – $0.75b
PUPS 2011 – $2.5b; 2012 – $2.5b
Total Private Placed Capacity 2011 – $7.0b; 2012 – $8.45b.”
Also as discussed on the call, the following email was sent to Zac Anderson at the Herald Tribune:
“Mr. Anderson: I have received word from some FPCA members that you are seeking additional information and/or verification of loss estimates for companies based on their market share in a particular geographic area. As we previously discussed, market share is an extremely poor basis for determining how losses should actually be estimated. Simply analyzing how many policies are written in a geographical area ignores many other critical components that would impact actual losses in an event. As the FPCA stated in [its] letter to you dated July 18th results would be inaccurate and misleading. I suggest you talk to either of the hurricane modeling companies ot better understand why – and also the OIR. Katherine S. Webb, Esq.”
Should you have any questions regarding these issues, please contact Katie Webb (kwebb@cftlaw.com).
