Statement By Stronger Safer Florida on Hurricane Protection Consideration
March 29, 2016 Tallahassee, Fla. – Today, the coalition of statewide business, consumer and environmental groups that represent Stronger Safer Florida issued the following statement in support of the State Board of Administration’s decision today to consider the purchase of reinsurance for the Florida Hurricane Catastrophe Fund, an important step for consumer and business protection. Continuing purchasing reinsurance for the Florida Hurricane Catastrophe Fund will help it 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.
“Florida is in a very strong financial position due to 10 years without a hurricane. But what happens when one hits? What about more than one? What about the second year? Floridians and Florida businesses cannot be tasked with paying another $6 billion in hurricane taxes when there is an opportunity now for the State Board of Administration to transfer Florida’s risk onto the world. Reinsurance spreads Florida’s hurricane risk outside the state and onto global investors, thus protecting Floridians from hurricane taxes. Florida is the country’s most hurricane-prone state and simply cannot rely on cash on hand and increased debt for properly preparing for a season of hurricanes or a second year of storms. The Cat Fund must fulfill its role as a stabilizing influence for Florida’s property insurance market while properly preparing for the next series of storms to hit the state.”