The Florida Hurricane Catastrophe Fund (FHCF) has been approved to transfer up to $2.2 billion in risk to the private reinsurance and capital markets.
The chief executive officer of FHCF, Jack Nicholson, has been approved by the State Board of Administration to assess options for private risk transfer. He will then bring back any information regarding options and pricing to the cabinet to seek approval.
Members of Stronger Safer Florida, a nonpartisan coalition of business, consumer and environmental groups from throughout Florida, welcomed the action.
“Stronger Safer Florida commends the State Board of Administration for authorising the Florida Hurricane Catastrophe Fund to seek opportunities to transfer risk away from Floridians and onto the global private reinsurance market. If attractive reinsurance rates exist for Florida, it would be wise for the Cat Fund to act so policyholders are less likely to face hurricane taxes in the event of a future hurricane,” said the coalition.