sam miller florida insurance council executive vice president july 18, 2012
DESCRIPTION
2012 Hurricane Insurance Update Recharged “Partners in Recovery,” - FEPA Mid-Year Work Session-. Sam Miller Florida Insurance Council Executive Vice President July 18, 2012. Insurance Positives Since Last Hurricane Landfall – Wilma, 2005. - PowerPoint PPT PresentationTRANSCRIPT
2012 Hurricane Insurance Update Recharged “Partners in Recovery,”
- FEPA Mid-Year Work Session-
Sam MillerFlorida Insurance CouncilExecutive Vice President
July 18, 2012
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
Insurance Positives Since Wilma, 2005
• Cat Fund - $8.6 B in cash • Possible pre-hurricane financing program –
bonds, other possibilities.
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
Insurance Positives Since Wilma, 2005
• Congress Extends for 6 Years National Flood Insurance Program – which covers storm surge and flooding.
• Rates will go up.
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.
Insurance Negatives Entering 2012
• Potential $1.8 B shortfall in Cat Fund• Assessments from Cat Fund & Citizens
Insurance Negatives Entering 2012
• Citizens still growing and competing with private insurers.
• Florida Supreme Court ruling striking public adjuster’s solicitation ban.
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
Partners in Recovery: Key Elements
Partners In Recovery
• Personal claims – key emergency management personnel
• Assistance and expedited handling
2012 Hurricane Insurance Update Recharged “Partners in Recovery,”
- FEPA Mid-Year Work Session-
Sam MillerFlorida Insurance CouncilExecutive Vice President
July 18, 2012