Florida Insurance Industry: Now Ready to Face Hurricane Season

Florida Insurance Industry: Now Ready to Face Hurricane Season

This year’s Atlantic hurricane season has opened. With that, a mixture of estimates for less-than-the-average storms, including the highest financial resources level to pay claims may assist businessmen and homeowners to take out their worries.

Florida, the most dangerous state in the US for hurricane hits, experienced 9 years without hurricanes. This allowed Florida insurance companies to establish more record capital reserves. However, that good fate may end any time this year, based on the condition of the Mother Nature.

Florida can sleep easier at night, according to Robert Hartwig, Insurance Information Institute President. At last, the insurance industry is financially rock solid.

In 1992, Hurricane Andrew, the 2nd most costly natural destructive force in the world (when it comes to insured losses), went onto land near Miami—a year with a calm season prediction.

Florida Insurance Industry: Now Ready to Face Hurricane Season

This year American government forecasters foresee another below-average season, with six to eleven possible tropical storms. There are three to six to reach hurricane conditions of 120-kph winds (74 miles per hour), because of cool seas and powerful effects of El Nino.

The officials of Florida reported some strongest financial reserves since 2004 and 2005 seasons where there were uncommon string of five strong hurricanes that brought about losses on billions of dollars.

Citizens Property Insurance Co. which has grown the biggest insurance carrier after 2005 in Florida has minimized the amount of policies to 592,000, almost one million less than the company’s peak in 2012. They say it has now about $7.4 billions—the utmost level since 2002 creation.

Through the years, the Hurricane Catastrophe Fund of Florida has established its reserves to $17 billion record, as stated by the fund’s chief operating officer, Jack Nicolson.

Hartwig said that Florida is keeping up the largest market in the world for property disaster re-insurance.

Most homeowners have their coverage through the fairly new insurers which operated after major national carriers left Florida, after Hurricane Andrew and the seasons of 2004 and 2005.

Florida Insurance Industry: Now Ready to Face Hurricane Season

Weiss Ratings, an agency for consumer-oriented group, said that for some years new carriers begun undercapitalized and small, giving questions on the capability to pay claims at the right time.

Gavin Magor, Weiss senior analyst, stated that the 2014 initial results on the insurance data show insurance carriers to keep backing up, every year Florida experiences hurricanes-free circumstances.

Certainly, hurricanes aren’t where people want them to be. There are struggles from the insurance companies if a strong hurricane strikes.

To learn more about Florida Hurricane Insurance, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N state Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.

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