A Florida lawmaker, who has opposed the state's expanded role as a reinsurer, said regulators will probably not allow insurers to pass through the cost of additional reinsurance coverage beyond the state-subsidized catastrophe limits.
Rep. Don Brown, R-DeFuniak Springs, told NU Online News Service the current situation is "pathetic" in that primary insurance companies are forced to rely on what he termed the questionable capacity of the Florida Hurricane Catastrophe Fund to bail them out in the event of catastrophic losses this hurricane season.
Earlier this year, the Legislature expanded the capacity of the fund to provide more affordable reinsurance with the aim that primary companies would reduce rates through the savings.
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