jump to main menu jump to subject menu jump to content jump to footer

Catastrophe Stress Test Analysis

A Look at the Annual Reinsurance Data Call/Catastrophe Stress Testing of Florida's Insurance Companies

Annual Reinsurance Data Call Summary

The Florida Office of Insurance Regulation (Office) conducts an Annual Reinsurance Data Call for companies writing property insurance to test the sufficiency of the reinsurance and capital available to pay claims. Each insurance company provides information about their capital and surplus, reinsurance purchased, and other financial information. The data call is sent first in April to ask about the intended purchase of reinsurance, and updated in June or July once the reinsurance purchase is completed.

Catastrophe Stress Test

In conjunction with the data call, the Office conducts a Catastrophe Stress Test. The stress test evaluates the insurance companies’ ability to absorb specified hurricane scenarios. Participating insurance companies are required to provide data showing how their surplus position would be affected by one or more historical storm scenarios. The data is run first by the insurance company through an approved model, and then the Office runs exposure data through the independent Florida model developed by Florida International University. The reinsurance data call tests whether an insurance company can withstand a 1-in-100 year storm, for example, and the stress test determines how much a particular hurricane would affect the insurance company’s capital and surplus.

Three Historical Storm Scenarios

1. 1947 Fort Lauderdale Hurricane
2. 1921 Tampa Bay Hurricane
3. 2004 Hurricanes Charley, Frances, Ivan and Jeanne

Annual Reinsurance Data Call/Catastrophe Stress Test Results

Of the 112 insurance companies who participated in the Annual Reinsurance Data Call, all had sufficient reinsurance, capital and surplus to pay for the claims of its policyholders in a 1-in-100 year storm event or higher. Furthermore, the Catastrophe Stress Test demonstrated that each of the participating 67 Florida property insurance companies would have more than the minimum capital and surplus amounts required by law following any of the three storm event scenarios they were given.

2015 Catastrophe Stress Test Report

Catastrophe Stress Test Participants Information

Catastrophe Stress Test Participants Results

*Insurance company participating on a group basis.

Resources & Information

Consumer Assistance

Contact the experts at the Department of Financial Services Division of Consumer Services for questions about insurance or to file a complaint. Call toll-free in Florida at (1-888-693-5236) or out of Florida at (850-413-3089). You can also send an email to consumer.services@myfloridacfo.com or visit the webpage at: http://www.myfloridacfo.com/Division/Consumers/contactus.htm.