Florida Workers’ Compensation Insurance Guaranty Association Investment Committee Report

The Florida Workers’ Compensation Insurance Guaranty Association (“FWCIGA”) Investment Committee (“Committee”) met recently to review a draft of a new FWCIGA investment policy.  To view the meeting packet, click here.

With the goals of capital preservation, risk aversion and adherence to investment discipline in mind, Committee discussion on the proposed new policy was focused mainly on four areas:

• Setting performance standards for FWCIGA investment managers
• Defining the desirable mix of government and private sector investments
• The possibility of lowering the policy’s permissible investment rating from AA+ because of the scarcity of such investments in today’s market
• The possibility of extending the policy’s permissible length of an investment beyond the current three-year limit in order to take advantage of more profitable opportunities

The Committee decided that a new draft of the policy that addresses the above issues would be prepared for presentation at its February 17, 2010 meeting.

Should you have any comments or questions, please contact Colodny Fass.

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