Statement By Stronger Safer Florida on Citizens Risk Transfer Package
Tallahassee, Fla. – Today the coalition of statewide business, consumer and environmental groups that represent Stronger Safer Florida issued the following statement regarding action taken Thursday by the Citizens Property Insurance Corporation’s Board of Governors’ approval of a $3.9 billion risk transfer package in advance of the 2015 hurricane season.
The move, which includes $1.855 billion in reinsurance and $2.05 billion in catastrophe bonds, improves the state-backed insurer of last resort’s resources to reduce chances of Floridians facing hurricane assessments after a storm. Since 2005, all policyholders have paid billions of dollars in assessments on their insurance bills to pay back damages from the 2004-2005 hurricane seasons. Transferring risk onto the global private reinsurance market helps to prevent further assessments from being levied.
“Stronger Safer Florida commends Citizens’ Board of Governors for transferring risk away from Floridians and onto global investors who want to do business in Florida. Florida has been spared from hurricanes for nearly 10 years, but it won’t last. Citizens’ leadership and this board have taken positive steps to purchase reinsurance and to protect residents, businesses and non-profits from the inevitable storms and claims that have to be paid. Eliminating hurricane taxes protects Florida’s economy, which can be devastated by a large hurricane or series of storms.”