Florida’s property insurance reserves are at risk
Mar 23, 2012
The following article was published in the South Florida Business Journal on March 23, 2012:
Florida’s property insurance reserves are at risk
By Brian Bandell
Legislators were warned that a major hurricane could blast a huge hole in Florida’s property insurance reserves, but little action was taken to address the problem during the session.
That means state-run Citizens Property Insurance Corp. and the Florida Hurricane Catastrophe Fund will have to hope for another light hurricane season and, in the event of a major storm, that Wall Street will have an appetite to finance billions of dollars in bonds funded by Florida insurance assessments. In the worst-case scenario – a one-in-100-year storm or multiple storms of that equivalent – expensive assessments would be charged to all.