High on FAIR’s legislative agenda is reforming the Florida Hurricane Catastrophe Fund (Cat Fund). The Cat Fund was created in November 1993 during a special legislative session after Hurricane Andrew. The purpose of the Cat Fund is to protect and advance the state’s interest in maintaining insurance capacity in Florida by providing reimbursements to insurers for a portion of their catastrophic hurricane losses.

The proposed legislation will align the Florida Hurricane Catastrophe Fund’s coverages with the private reinsurance marketplace, repeal the surcharge being paid by insurance consumers, and preserve the Fund’s claims reimbursement capacity by specifying that the Fund should only sell the coverage that the market wants. Correcting these and other inefficiencies will provide direct and indirect rate relief ranging from 8-10% for Florida’s rate payers.

Florida Hurricane Catastrophe Fund Reform Initiative

The proposal accomplishes the following:

Restructures the Cat Fund to include optional layers of coverage giving insurers more choice between the Fund and private market options.
Reduces coverage gaps between existing Fund coverage and the private market, eliminating the need to purchase duplicative reinsurance.
Allows ALL reinsurance costs to be included in rate filings
Reduces the cash build-up factor for private companies but not for Citizens.

Please consider joining FAIR as a member, or making a tax-deductible donation to the FAIR Foundation, and becoming part of a critical movement that works to safeguard consumers.

Sign the petition to support reforms to Assignment of Benefits abuse and the Florida Hurricane Catastrophe Fund