The successful placement amply demonstrate private sector interest in catastrophe risk, and it comes at a good time for Citizens, which is losing some of its power to lay “hurricane taxes” on the private market.
The move comes days after Gov. Rick Scott vetoed a bill that would have diverted state premium tax revenues to shore up the fund. Meanwhile, Fitch has reaffirmed the Cat Fund’s AA rating.
The state-run insurer’s first-ever catastrophe bond could be as large as $750 million, underscoring that private markets want to take on catastrophe risks.
We offer eight suggestions for state lawmakers who are looking for ideas on how they should (and shouldn’t) respond to insurance challenges posed by large natural disasters.
Florida’s Citizens Property Insurance Corp. is reportedly preparing a $250 million issuance through an entity called Everglades Re Ltd.
The Florida legislative session ended earlier this month with no real reforms to the Florida Hurricane Catastrophe Fund; but a late addition to the state budget attempts to shore up the Cat Fund’s finances through a tax-credit program. From Insurance Journal: Sponsored by Senator J.D. Alexander (R-Lake Wales), the plan is designed to help shore-up [...]
It wasn’t a perfect session, but ultimately, advocates of insurance reform in Florida saw lawmakers pass two of the four major insurance bills before the Legislature.
Florida’s insurance system will be in better shape than it was last year, but the legislation passed during the just-completed 2012 session won’t fix deep underlying problems.
C-FIRE Deputy Director R.J. Lehmann talks with J. Robert Hunter of the Consumer Federation of America about overcapitalization of the P&C industry and the shift of weather catastrophe risks onto consumers and taxpayers.
Florida Cat Fund reform needed sooner, not later
by Matthew Glans on February 28, 2012 · View Comments
Christian Cámara, the Florida Director of the Center on Finance, Insurance and Real Estate at The Heartland Institute had an excellent op-ed piece on the Florida Catastrophe Fund published last week in the Gainesville Sun. In the piece, Cámara criticizes legislators and insurance regulators in Florida for not moving forward on Cat fund reform and [...]
