Mandated Hurricane Pool Participation Study Estimates Up To $4.62 Billion In Annual Florida Premium Savings
Mar 24, 2009
In an unaudited study commissioned by the Florida-based “Shield Our State” Coalition, Pinnacle Actuarial Resources (“Pinnacle”), an actuarial and management consulting firm, proposes mandatory insurer participation in a public/private “Florida Statewide Hurricane Pool” (“FSHP”).
The “Shield Our State” coalition is spearheaded by financier Dan Montgomery, who unveiled the FSHP plan at the Florida Chamber of Commerce Property Insurance Summit in Orlando during February, 2009. Montgomery’s coalition describes itself as “a new public-private partnership that will increase financial security for Floridians in the wake of a catastrophic hurricane, stabilize residential insurance rates, and restore the private residential insurance market in the state.”
The Pinnacle study explores the economic impacts of FSHP implementation and, using various models, calculates that through the FSHP, Florida homeowners could save between $2.12 billion and $4.62 billion on average per year on their insurance premiums.
According to the study, potential savings in urban areas were estimated to be between 40-50 percent, however, immediate coastal properties were not used in the calculation.
The Pinnacle study is attached for your review.
Should you have any questions or comments, please contact Colodny Fass.
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