Florida catastrophe reinsurance protection superior to pre-Andrew
Thursday, 05 28 2015, Category: Insurance and Reinsurance, Country: United States
Floridian insurers are better protected with catastrophe reinsurance than in the early 1990’s pre-hurricane Andrew, thanks to the use of both vertical and sideways protection, according to financial analysis firm Demotech Inc.
In advance of the 2015 Atlantic hurricane season, Demotech believes that homeowners insurers in Florida have “superior” protection in place. This is no doubt helped by the competitive reinsurance market and the softened state of Florida property catastrophe reinsurance prices.
Demotech has released a preliminary assessment of the preparedness of 56 Florida property insurers that it reviews and rates and concludes that they can withstand a severe hurricane season, featuring a 1 in 100 year storm, thanks to superior reinsurance purchasing.