Florida Hurricane Catastrophe Fund

The Florida Hurricane Catastrophe Fund (FHCF) is again looking at utilising risk transfer from the reinsurance markets as a source of additional protection for the 2017 hurricane season, with a $1 billion renewal being explored by the Florida State Board of Administration.

The Florida Hurricane Catastrophe Fund (FHCF) has completed a $1 billion renewal of its private reinsurance cover, the second year the fund has looked to private sources of traditional and third-party risk capital to offload the risk of severe a hurricane season.

The Florida Hurricane Catastrophe Fund (FHCF) is set to revisit the private reinsurance market in 2016, to test appetite and pricing for a potential renewal of its program which will likely repeat the $1 billion of placement of last year.

Relative to other forms of capital used for financing or risk transfer, the perceived value of reinsurance is currently high, as evidenced by the first time use of reinsurance by the Florida Hurricane Catastrophe Fund (FHCF), according to Moody’s.

Collateralised and insurance-linked securities (ILS) backed capacity providers played a key role in the Florida Hurricane Catastrophe Fund’s (FHCF) 2015 purchase of $1 billion of private reinsurance cover, which Artemis has details of today.

The Florida Cabinet’s State Board of Administration and Governor Scott have now approved the Florida Hurricane Catastrophe Fund (FHCF) to buy $1 billion of private reinsurance coverage, from a combination of traditional and collateralized reinsurance.

The Florida Hurricane Catastrophe Fund (FHCF) is getting closer to accessing the private reinsurance and risk transfer markets for the first time, as it seeks to better protect itself and take advantage of near-record low reinsurance rates for Florida property catastrophe risks.

The Florida Cabinet and Governor Scott have just approved the CEO of the Florida Hurricane Catastrophe Fund (FHCF) to go to the private reinsurance and capital markets to establish options and pricing for up to $2.2 billion of risk transfer.

The Florida Hurricane Catastrophe Fund (FHCF), the state’s backstop reinsurance fund for private insurers, is once again seeking approval from the Cabinet to tap the private reinsurance markets for up to $2.2 billion of protection.

According to a report, the proposal seeking approval for a $1.5 billion private reinsurance purchase by the Florida Hurricane Catastrophe Fund has stalled in the legislature and could be running out of time ahead of the 2014 hurricane season.