Hurricane Ian Batters Florida Amid Insurance Market Woes
Senior Policy Advisor Beth Vecchioli was quoted in a Law360 article discussing the impact Hurricane Ian will have on Florida's insurance industry. In an effort to manage the exposure of insurance companies to major storms like Ian, Florida's Legislature approved the Reinsurance to Assist Policyholders Program (RAP). The program would let carriers tap into a $2 billion pool for their two greatest loss events in a year. Ms. Vecchioli commented that RAP could benefit the smaller insures that observers generally agree are the greatest risk to insolvencies.
"Smaller insurers don't always have access to additional capital like larger insurers do, so that is definitely a challenge for smaller insurers, especially after a catastrophe," she said. "Because the RAP program doesn't provide exactly the same coverage as is generally purchased in the commercial reinsurance market, Hurricane Ian will definitely put additional financial pressure on all property insurers in Florida."
READ: Hurricane Ian Batters Florida Amid Insurance Market Woes (Subscription required)