Florida Hurricane Catastrophe Fund Publishes Proposed Proposed Rates, Rating Regions, Ratemaking Formula Report
Apr 20, 2016
The Florida Hurricane Catastrophe Fund (“FHCF”) published its 2016 Proposed Rates, Rating Regions and Ratemaking Formula Report with supplemental information today, April 20, 2016.
These rates represent the proposed rate for 2016 as a result of the 2016 FHCF Premium Formula.
They are based on the 2016 Ratemaking Formula Report approved on March 29, 2016.
Accessible, via the hyperlinks below, the rates and FHCF Premium Formula Report reflect the additional costs for a risk transfer product.
The rates assume:
- 1.81 percent exposure trend
- Mandatory cash build-up factor at 25 percent
- Modifications to the Mitigation Factors
- Pre-event 2013A bonds net expense
- Pre-event 2016A bonds net expense
- Reinsurance placement net expense
- FHCF pre-event retention based on $6.966 billion
- FHCF limit of $17.0 billion
The FHCF notes that, according to Section 215.555(5)(b), Florida Statutes, the FHCF may revise the Premium Formula at any time, and that these rates are provided for informational purposes only. Although they are believed to be reliable, they are not guaranteed as to accuracy or completeness.
2016 Proposed Rates
- FHCF 2016 PROPOSED RATEMAKING FORMULA REPORT (with Supplemental Information)
- FHCF 2016 PROPOSED RATES (Excel file)
- FHCF 2016 PROPOSED RATING REGIONS (Excel file)
Should you have any questions or comments, please contact Colodny Fass.
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