Healthy insurance market
We applaud the Times for the thorough coverage of Florida’s homeowners insurance market and willingness to report on the industry’s strong financial position on virtually every level, including: the Florida Hurricane Catastrophe Fund, with almost $14 billion in surplus; Citizens, with more than $7 billion; and a healthy and competitive private marketplace led by several Florida-based insurers.
These insurers are well-capitalized. At the end of 2015, Florida’s domestic insurers had a combined surplus of $2.4 billion and carried first-event catastrophe reinsurance of $20 billion. They could withstand a major storm that generates $22 billion in claims.
Demotech, a company that assigns financial stability ratings to private insurance companies, confirmed that all of the Florida companies it rates are backed up by reinsurance programs, catastrophe response plans and corporate disaster recovery programs that are stronger than in 2015.
As a result, insurers based in the state can handle not one, but two storms that caused the same devastation as Hurricane Andrew.
William Stander, Tallahassee
The writer is executive director of the Florida Property & Casualty Association.
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