Florida Hurricane Catastrophe Fund


FHCF renews reinsurance at flat pricing, using more third-party capital

The Florida Hurricane Catastrophe Fund (FHCF) has renewed its reinsurance program at a slightly smaller size of $920 million, but with flat pricing and insurance-linked securities (ILS) players taking a slightly larger share in 2019.Leading the ILS market participation in the FHCF's 2019 reinsurance renewal was Fermat Capital Management, which read the full article →

Reinsurance pricing should reflect Florida legislative reforms: Demotech

Reinsurance pricing for catastrophic events should take into account the impact that recently enacted legislative reforms in Florida will have, although right now just how much they will reduce loss and loss adjustment costs in the state remains to be seen.Rating agency Demotech, Inc. calls for the reforms to be read the full article →

16 carriers affected by Demotech’s raised 130-year reinsurance requirement

Out of the more than fifty Floridian insurance carriers that are rated by Demotech, Inc. roughly two-thirds are already meeting or exceeding the raised requirement to buy first event reinsurance protection to the 1-in-130 year loss level, but 16 may need to buy more coverage.The change to Demotech's reinsurance requirement read the full article →

Demotech raises reinsurance requirements for Florida insurers

Floridian primary insurers would be advised to check their reinsurance plans as the renewal fast approaches, after Demotech, Inc. updated its first-event reinsurance requirements to mandate that a 1-in-130 year loss event be covered.The figure has been increased in 2019 from a requirement that reinsurance should cover a 100 year read the full article →

Optimism persists on Florida renewal pricing, despite FHCF increases

Reinsurance and ILS markets remain optimistic on the potential for relatively significant price increases at the next Florida renewals in June, despite the fact some insurers are increasing their FHCF participation rates.Heritage Insurance Holdings, Inc. doubled its Florida Hurricane Catastrophe Fund (FHCF) participation to 90% it has emerged and as read the full article →

FHCF’s $1bn 2018 reinsurance renewal came in 4% cheaper (net)

The $1 billion Florida Hurricane Catastrophe Fund (FHCF) reinsurance program renewal at June 1st came in at a cost that was roughly 4% cheaper on a net basis, despite the fact the attachment point had been lowered effectively making the program layer a riskier underwriting opportunity.It's a successful result for read the full article →

ILS plays key role in Florida cat fund (FHCF) $1bn reinsurance renewal

The Florida Hurricane Catastrophe Fund (FHCF) successfully renewed its $1 billion reinsurance program at June 1st 2018, with significant insurance-linked securities (ILS) fund and collateralized reinsurance vehicle participation.For the 2018 reinsurance renewal, the FHCF has succeeded in lowering the attachment point of its private risk transfer coverage, as it had read the full article →

Florida cat fund (FHCF) aims for $1bn reinsurance buy at lower attachment

The Florida Hurricane Catastrophe Fund (FHCF) is expected to target a renewal of its $1 billion layer of reinsurance coverage at the mid-year, but the attachment point of the layer is expected to drop down as the Fund arranges its financing after the impact of hurricane Irma last year.The first read the full article →

FHCF’s hurricane Irma loss estimated at up to $6 billion

The Florida Hurricane Catastrophe Fund (FHCF) is facing losses of up to $6 billion due to the impacts of hurricane Irma, according to actuarial estimates, with the loss being contained within the FHCF's funding and not significant enough to trigger its reinsurance program.The FHCF's consulting actuary Paragon Strategic Solutions has read the full article →

Florida cat fund (FHCF) renews $1bn reinsurance at reduced cost

The Florida Hurricane Catastrophe Fund (FHCF) reinsurance renewal has now been completed, with the State Board of Administration (SBA) securing another $1 billion layer of cover, again featuring fully collateralized participation from some ILS fund managers, and with a -4% price reduction year-on-year.The FHCF first visited the reinsurance market in read the full article →