The Florida Cabinet received a bit of encouraging news recently about the state’s tenuous hurricane catastrophe fund when the head of Florida’s investments told them a loosening credit market provides the ability to bond an additional $5 billion, if needed.
“That’s good news, very good news,” said Chief Financial Officer Alex Sink, noing that several months ago the state thought it might be able to get only $3 billion worth of bonds.
Ash Williams, director of the State Board of Administration, said Florida could financially withstand a severe storm costing about $22 billion today. The Florida Hurricane Catastrophe Fund now has an exposure of more than $28 billion with less than $8 billion on hand to pay claims.
The Florida Insurance Council urged state officials to continue looking for other options to ensure the “cat” fund can meet its financial obligations.
Was this article valuable?
Here are more articles you may enjoy.
Pierce Named CEO of GEICO as Combs Resigns 
‘Dream Is in Sight:’ Chamber, Reinsurers, Insurers Urge Florida to Stay the Course 
Dunkin’ Cashier in Georgia, Stabbed by Rapper, Can’t Claim More Than Workers’ Comp 
In Alabama, Shot Employee Gets No Workers’ Comp and No Employer’s Liability From This Issue
