2012 hurricane insurance update recharged “partners in recovery,” - fepa mid-year work session-...
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2012 Hurricane Insurance Update Recharged “Partners in Recovery,”
- FEPA Mid-Year Work Session-
Sam MillerFlorida Insurance CouncilExecutive Vice President
July 18, 2012
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Insurance Positives Since Last Hurricane Landfall – Wilma, 2005
• Florida Hurricane Catastrophe Fund in best financial shape ever
• Citizens also with great liquidity, $19.5 B
• Six years without a hurricane allowed cash to accumulate
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Insurance Positives Since Wilma, 2005
• Cat Fund - $8.6 B in cash • Possible pre-hurricane financing program –
bonds, other possibilities.
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Insurance Positives Since Wilma, 2005
• Citizens’ 2012 claims-paying ability: $19.5 B in total, maybe the most ever.
• $5B in pre-event liquidity (this must be repaid)• $1.5 B in private reinsurance (a landmark
development)• $6.9 B from the Cat Fund
• Six years without a hurricane allowed cash to accumulate
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Insurance Positives Since Wilma, 2005
• Congress Extends for 6 Years National Flood Insurance Program – which covers storm surge and flooding.
• Rates will go up.
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Insurance Positives Since Wilma, 2005
• Key Reforms in SB 408 from 2011 session.• Three-year limit on hurricane claims.• Installment payments on roof installation, other
repairs.• Controls on public adjusters.
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Insurance Negatives Entering 2012
• Potential $1.8 B shortfall in Cat Fund• Assessments from Cat Fund & Citizens
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Insurance Negatives Entering 2012
• Citizens still growing and competing with private insurers.
• Florida Supreme Court ruling striking public adjuster’s solicitation ban.
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Florida’s Three-Legged Stool
• Emergency Management Community/State Division of Emergency Management/Florida Emergency Preparedness Association
• Office of Insurance Regulation• Department of Financial Services
• Florida Insurance Council, Insurance Information Institute, and Florida Association of Insurance Agents and other agents groups
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Partners in Recovery: Key Elements
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Partners In Recovery
• Personal claims – key emergency management personnel
• Assistance and expedited handling
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2012 Hurricane Insurance Update Recharged “Partners in Recovery,”
- FEPA Mid-Year Work Session-
Sam MillerFlorida Insurance CouncilExecutive Vice President
July 18, 2012