Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

State Board of Administration of Florida

Florida Hurricane Catastrophe Fund

For assistance, call 850-488-4406 or visit https://www.sbafla.com/fhcf/

What is the purpose of the program?

The Florida Hurricane Catastrophe Fund (FHCF) was created in November 1993 during a special legislative session after Hurricane Andrew caused over $15 billion in losses. The purpose of the FHCF is to protect and advance the state's interest in maintaining insurance capacity in Florida by providing reimbursements to insurers for a portion of their catastrophic hurricane losses.

Who does the program serve?

This tax-exempt state trust fund serves both private insurers and Florida citizens.

Where does the fund get the money to pay for catastrophic losses?

The FHCF is financed by several sources. Reimbursement premiums paid by participating insurers are the primary source of funding to cover FHCF's reimbursement obligations. In addition to these premiums, other sources of funds to pay FHCF claims include investment income, proceeds from pre-event bonding, recoveries from reinsurance and other risk-transfer transactions, and proceeds from post-event revenue bonds.

Who oversees and advises the program?

The State Board of Administration (SBA) oversees the fund. As of June 2022, the board had over $228 billion under management, of which the FHCF comprised $12.4 billion. Fourteen full-time equivalent employees manage the fund. A nine-member advisory council provides the SBA with information and advice in connection with its duties.

How are these activities funded?

The SBA does not receive legislative appropriations for its activities related to the operations of the Florida Hurricane Catastrophe Fund. The cost of administering the fund is supported by reimbursement premiums collected from insurers.The Florida Hurricane Catastrophe Fund's Fiscal Year 2022-23 total operating budget was $9,883,221.05.

Updates

Reinsurance to Assist Policyholders (RAP) Program. This legislatively created program became effective on May 26, 2022. It provides a non-recurring total of $2 billion in coverage over a two year period for a portion of RAP insurers’ hurricane losses during one hurricane season. Participation in both the FHCF and the RAP program is mandatory for Florida residential property insurers.

Where can I find related OPPAGA reports?

A complete list of related OPPAGA reports is available on our website.

Where can I get more information?

Other Reports
Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments, Florida Hurricane Catastrophe Fund, February 2023
2022 Annual Report, Florida Hurricane Catastrophe Fund, 2022

Websites of Interest
State Board of Administration

What are the applicable statutes?

Sections 215.555 through 215.559, Florida Statutes

Whom do I contact for help?

Gina Wilson, Chief Operating Officer, 850-488-4406
Website