CFO Calls for Insurance Company Stress Test
Chief Financial Officer Jeff Atwater recently called for an insurance company stress test designed to give consumers confidential that Florida’s residential property insurers are well-managed and will be able to deliver when Florida next experiences a hurricane. Atwater believes the results should be made public and should show the process the insurers, particularly smaller insurers, have gone through to ensure financial soundness.
The Office of Insurance Regulation has conducted a three-part reinsurance data call for the last several years to evaluate the adequacy of insurers’ reinsurance programs and the amounts of their potential retained losses outside of reinsurance recoveries. The OIR data call has evolved to include consideration of how insurers would withstand a multiple event scenario such as having hurricanes of the magnitude of Frances and Jeanne strike in the same season.