SBA Updates Status of FHCF
Speaking at this morning’s meeting of the Florida Cabinet, SBA Executive Director Ash Williams provided an update on the status of the Florida Hurricane Catastrophe Fund. Mr. Williams noted that the FHCF has $8.5 billion in cash on hand. Nonetheless, the FHCF seeks to move forward with pre-event bond financing because, as pointed out by Mr. Williams, changes in the global markets can affect liquidity at any time. Entering into pre-event financing transactions creates greater predictability for the FHCF.
Mr. Williams also described the decline in TICL coverage over the course of the legislatively-mandated phase out. The maximum TICL coverage available next year will be $2 billion, but its rate will be six times the actuarially indicated rate. The FHCF therefore does not anticipate many insurers will purchase the coverage.