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