Alex Sink On Cat Fund

The Florida catastrophe fund is an issue CFO Alex Sink has been concerned about for quite some time. Sink and former House Speaker Marco Rubio attempted to kill the cat fund. Sink's concern is Florida would be liable for $71 billion after insurers' claims reach $22 billion. That was before insurance companies trying to stop providing hurricane insurance. The cat fund was created because Gov. Charlie Crist believed it would compel insurance companies to lower their rates. We know now that didn't happen.

Sink outlined how she wants to change the cat fund.

Reduce the risk of Property Damage with My Safe Florida Home – With the overwhelming success of the My Safe Florida Home Program, CFO Sink recommended that the hardening of homes be continued by rolling over the estimated $20 million remaining in the program.

Reduce Uncertainty of Bonding by Lowering Cat Fund Exposure – As she suggested in 2008, CFO Sink urged the Legislature to reduce the risk exposure of the Cat Fund by gradually phasing out the TICL layer over a series of years.

Establish Florida’s Reinsurance Program in the Fall, Not the Spring – CFO Sink proposed that the Legislature empower another entity with the ability to set coverage levels in the Cat Fund in the fall, taking advantage of the broader range of possible markets.

Gradually Return Citizens Back to Its Role as “Insurer of Last Resort” – With Florida’s homeowners subsidizing Citizens and their actuarially unsound rates, the CFO encourage the Legislature to seriously consider the recommendations of the Citizens Task Force.

My read is Sink wants to kill Crist's cat fund. Florida's financial woes may do just that.