ORLANDO — A state report says 67 Florida property insurers “ultimately” passed a stress test that simulated three hurricane scenarios, though at least one company — which was not named — did not initially have enough reinsurance, or backup coverage to pay claims.
Florida Insurance Commissioner Kevin McCarty said the aggregate results mean consumers “should have confidence,” though state Chief Financial Officer Jeff Atwater said at an industry conference in Orlando that he would “still like it to be more transparent.”
The test simulated the financial impact of the 1947 Fort Lauderdale hurricane, the 1921 Tampa Bay hurricane, and 2004 hurricanes Charley, Frances, Ivan and Jeanne that gave Palm Beach County, among other places, a severe pounding.
“We’re pleased to see these results, which should give consumers added peace of mind and confidence in Florida’s homeowners insurers,” said William Stander, executive director of the Florida Property & Casualty Association, a group made up of 17 Florida-based home insurers, on Tuesday.
“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,” McCarty said in a statement.
Florida relies increasingly on small, homegrown companies as many national carriers have declined to write new property business or dropped customers. A decade without a direct hit from a hurricane has helped, as many companies have tried to bolster their financial resources to pay claims, including reinsurance.
