TALLAHASSEE, Florida — A state-created fund that backs up private insurers in Florida remains healthy heading into this year’s hurricane season, even as it deals with ongoing market volatility and paying off billions associated with last year’s deadly storms.
“It would be really nice this year if we didn’t have a hurricane,” Gina Wilson, chief operating officer for the Florida Hurricane Catastrophe Fund, said Monday during a meeting of the fund’s advisory council.
Details: The fund, which offers insurance companies reinsurance at prices generally lower than those in the private market, is legally obligated to provide up to $17 billion in coverage. The advisory council approved a new report that detailed the fund’s financial health and how much money it would need to borrow to meet all of its obligations.
The status of the account, nicknamed the “Cat Fund,” is important to Floridians regardless of where they live. The state can impose a surcharge critics call a “hurricane tax” on most insurance policies — including auto insurance policies — to replenish the fund if it runs out of money.
