FWCJUA Reinsurance Committee Meeting Report: December 1
Dec 3, 2008
On Monday, December 1, 2008, the Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) held a Reinsurance Committee (“Committee”) meeting to review the 2009 Reinsurance Program options. To view the complete meeting agenda, click here.
Bill Fleischhacker from the FWCJUA’s reinsurance intermediary, Aon Benfield, gave a presentation that detailed available options for the 2009 FWCJUA Reinsurance Program (“Program”). The following items were discussed:
- The current Program, participating reinsurers and price
- The 2009 Program decisions and conditions
- Catastrophe reinsurance quotes received to date and cost control strategies available to manage reinsurance costs vs. coverage
- Excess casualty reinsurance quotes received to date and cost control strategies available to manage reinsurance costs vs. coverage
After lengthy discussion on current market conditions and the merits of each Program section, the Committee approved a retention reinsurance structure that includes an annual aggregate deductible (“AAD”). In its decision, the Committee specified a cap on the AAD not to exceed $300,000, provided that the AAD option is accepted by reinsurers.
The Committee also approved terminating existing reinsurer agreements on a cut-off, rather than run-off basis. It was agreed that a run-off basis would allow multiple retentions for multiple policies subject to different reinsurance structures and would be more cumbersome to administer.
The meeting was then adjourned.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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