Nature that have been to Florida coastline run 7 years no record hurricane landed recently allowed property insurance company to run out of inventory warehouse.
Therefore, 6 months when the new hurricane season began last Saturday, national insurance, officials said the industry was prepared to accept a big storm. "We are better positioned today than I have seen in 10 years," Kevin McCarthy, who is in charge of the country's insurance regulatory offices, told Reuters.
However, industry experts question the state of Florida holding insurance system is to be able to cope with in the long run.
Vichy, President of the insurance information institute, Robert hart said, "this is a very lucky in Florida, the company has been able to establish its foreign exchange reserves, but the fact is, Florida is living on borrowed time.
Just this week, republican governor rick Scott has signed a new aims to reduce the risk of the national hurricane losses gradually turned to the owner property insurance law on private insurance companies. The new law also slash home state citizens property insurance can cover by 2 million yuan, year-on-year decline in value of $700000.
Because of its size and geographical conditions, 1200 miles of coastline stretched out on a peninsula in the Caribbean is in line with the warm waters of the Atlantic, fla., is a unique risk insurance market. Its cover most of the residential and commercial property - 79% - in the coastal areas, vulnerable to wind damage and flooding.
Coastal property value at just under $three trillion, according to a report to be published next week AIR all over the world, the world's leading catastrophe risk modeling. Florida accounted for almost 30% of the nation's 10 trillion coastal exposure, AIR.
Only New York has as much as possible of contact, coastal property of $3 trillion is us $23.9 billion to over us $23.9 billion in south Carolina and Georgia.
Florida is unusual in other ways too. Private companies dominate the market, unlike in most other countries, the insurance system is strict control by the state of Florida requires all companies pay state-owned hurricane catastrophe fund as a safety net. Louisiana has a similar system, its state-owned property insurance company, also known as citizens, the California earthquake has its own safety net.
In Florida hurricane Andrew in 1992, private insurance in Miami dade county, caused $2.6 billion in compensation. Country has been hit again, in 2004 and 2005, a series of storms in south Florida.
As the last resort, a state-owned insurance company citizen has left, hold more than 1.3 million policies, making the state's largest property insurance company, about 21% of the entire housing market. Due to the lack of recent storms, citizens have managed to build a cash surplus of about $660 million, plus $180 million in reinsurance.
Citizens through issuing catastrophe bonds, to manage its risks and allow insurers to transfer risks to private investors. So-called catastrophe bond buyers receive a certain size or disasters could be eliminated, in the main risks in exchange for higher returns.
Catastrophe bonds by the end of this year will provide more than 1 billion yuan, covering southeast and Florida, according to co-founder John xu, fermat capital management in catastrophe bond investors.
However, critics say, the country's politicians in consumers wary of allowing citizens to charge lower than market interest rates, the insufficient funds of insurance companies. They note that the total insurance risk has more than doubled, since 2005, it faces a potential $2.1 billion dividend events in a storm in 100.
"Risk transfer, we did close the gap, we have not closed the gap, but we have narrowed the gap between the" salon Binnun, citizen's chief financial officer, told Reuters.
Vulnerable to one or two blunt
Property insurance is usually not including hurricane related flood damage, including arranged separately. Private insurance is not included in the Florida many coastal home, not to be covered by the federal flood insurance programs.
Countries' cat fund ", created to backup the private insurance companies, Andrew, have also manage to build a large surplus, and accumulated nearly $1.2 billion to pay in the event of a potential claim of a big storm, according to its director, jack Nicholson.
Though he denies this is insufficient funds, Nicholson says, the fund is easily in the municipal bond market volatility, it relies on to meet the provisions of the state's debt of $1.7 billion dollars.
AM the Best company, mainly for the insurance of the credit rating agency, said Friday, confirmed the cat fund position later improved.
Recently weather luck run the saved state from bankruptcy, HARTWIG said the insurance information institute, and points out that, if a big storm in Florida during the recession, countries would probably have turned and walked the bond market.
Nicholson worry, unless the cat funds to increase its cash reserves, a big storm may keep it for empty, show insurance company under a big storm.
If you have to borrow money in order to meet the claim, the fund should be placed a "evaluating" almost all of the insurance policy of the state, from family to cars, wherever they live, is not easy to land the hurricane. Such evaluation, condemning some taxes, provide rich coastal homeowners "welfare". Policy holders to still pay off assessment from hurricane Wilma last time in 2005.
Governor Scott signed the bill on Wednesday to guide the homeowners from citizens, can be covered by the state-owned company family value limit. Legislature rejected a stricter legislation, will charge much higher new citizens join premium accelerated this process.
Scott said: "citizens has become too big... is there any way in a significant hurricane, citizens must be able to pay" emergency officials in Miami on Thursday.



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