State Officials Expect Minimal Losses To Catastrophe Fund From Recent Hurricanes

Oct 18, 2016

Florida’s catastrophe fund will suffer minimal losses due to Hurricane Matthew, state officials announced Tuesday. With $17 billion in reserve, the “cat fund” is ready to pay out insurance companies that are overloaded by damage claims.

Credit NOAA

Officials have not received any requests for reimbursements from insurance companies so far. But early damage estimates show the fund may have to pay out $200 million due to Hurricane Matthew, says fund CEO Anne Bert.

“So based upon these early estimates we believe some companies could trigger cat fund coverage. Conservatively, we estimate cat fund losses should be less than about 200 million dollars. It’s likely that it will be less than that,” Bert said.

Officials expect minimal losses from Hurricane Hermine, if any. Bert expects to get loss estimates from insurance companies by the end of next week.