Statement By Stronger Safer Florida on State Board of Administration Action

 

Tallahassee, Fla. – Today the coalition of statewide business, consumer and environmental groups who represent Stronger Safer Florida issued the following statement regarding the action taken by the State Board of Administration to purchase $1 billion in reinsurance, an important milestone in better preparing the Florida Hurricane Catastrophe Fund to meet its obligations in the event of a major hurricane or series of storms. Unlike the issuance of pre-event bonds, which is debt that must be paid back, reinsurance provides coverage for Floridians without acquiring new debt.

“The State Board of Administration’s decision today to purchase reinsurance spreads Florida’s hurricane risk outside the state and onto investors worldwide. This action will aid the Cat Fund in producing more stability for the property insurance market and positions policyholders to avoid hurricane taxes when a future storm hits the state. After 10 years that cost Floridians, businesses, churches, charities and others $3 billion in assessments on their policies, the State Board of Administration’s actions are smart for Florida. This is an important first step in ensuring the Cat Fund can fulfill its role as a stabilizing influence for Florida’s property insurance market before and through the next series of storms to hit the state.”