TALLAHASSEE, Fla. -- The Florida Office of Insurance Regulation (Office) has completed its Catastrophe Stress Test to review the adequacy of reinsurance, capital and surplus of Florida-based property insurance companies. In its third year, the Catastrophe Stress test demonstrated that the Florida property insurance market can withstand significant catastrophic losses.
In consultation with Chief Financial Officer Jeff Atwater, the Catastrophe Stress Test was enhanced to produce a more robust and strenuous testing process giving consumers the benefit of a new public report which reveals more information about the companies providing their homeowners coverage. It also highlights one of the many ways the Office monitors the property insurance companies who operate in Florida throughout the year.
“Florida’s insurance companies have benefitted from an influx of capital into the reinsurance market, which has allowed them to lower rates, boost surplus and protect against catastrophes. Floridians should have confidence not only in the results of this year’s Catastrophe Stress Test, but also in the development of this tool to assess the risk of hurricanes,” stated Kevin M. McCarty, Florida’s Insurance Commissioner. “I appreciate Chief Financial Officer Jeff Atwater’s efforts to bring greater transparency to this very important public policy issue.”
The Catastrophe Stress Test Report can be accessed at: http://floir.com/Sections/PandC/prepared.aspx.