While there is no preventative measure to stop a hurricane from reaching Florida, preparation is paramount and it requires going beyond buying generators and stocking up on batteries, bread and water. It requires financial preparation, which is something that Florida leadership has been focused on in recent years.
In March, Citizens Property Insurance Corporation, the state-backed insurer of last resort, shrank to less than 600,000 policies, well below its 1.5 million peak in 2005. Additionally, the State Board of Administration (SBA) enhanced the state’s financial resiliency when it authorized the Florida Hurricane Catastrophe (Cat) Fund to transfer up to $1 billion of potential catastrophic risks and losses to the global private market. This coverage is another prudent step in protecting residents, businesses and nonprofits from new hurricane taxes in the event of catastrophic losses.