Florida To Head Up Conference To Explore Establishment Of A Multi-State Catastrophe Plan
TALLAHASSEE (2/14/2007) - The National Association of Insurance Commissioners (NAIC) will hold a meeting tomorrow and Friday to explore the creation of a multi-state catastrophe plan. Representatives from states across the country are expected at the forum to be held in Atlanta, GA. Florida Insurance Commissioner Kevin McCarty will lead the meeting on Thursday. He will be joined by Florida's Chief Financial Officer Alex Sink.
McCarty, who chairs the NAIC Property and Casualty Insurance Committee, has spearheaded efforts to create a national or regional catastrophe plan. He has testified numerous times before the U.S. Congress on the issue and has been working with the NAIC to explore the possibilities of such a plan.
While Congress continues to debate the possibility of formulating a national catastrophe plan, McCarty believes that individual states could join in an interstate compact that would feature a common catastrophe reinsurance pool. Additionally he also believes the program should promote personal responsibility among policyholders, establish reasonable building codes, development plans, land use plans, and mitigation programs, and the program should maximize the risk-bearing capacity of the private markets.
CFO Sink said she is looking forward to meeting with leaders from other states to look into creating a regional catastrophe fund. "Hurricanes will not wait for the federal government to get a national catastrophe fund up and running. It's up to the coastal states to work together to ensure our citizens have access to affordable hurricane insurance," she said.
"The world has witnessed the impact that a catastrophic natural disaster can have on an economy whether from tsunami, earthquake or hurricane," said McCarty. "Historically, economic security in the face of these disasters was secured through the private insurance markets. However, over the last decade, this historical paradigm seems to be changing."
Numerous topics are expected to be discussed at the conference including:
- What is a catastrophe plan
- What residual markets are currently in operation and how are they working?
- What steps can be taken to mitigate damage and how can they affect rates?
- What are interstate compacts and how do they function?
- Building codes and building code enforcement.
- Residential and commercial vulnerability and a wind tunnel presentation.
- How could rates for a multi-state cat fund be developed?
The meeting will be held at the Hilton Atlanta Airport, 1031 Virginia Avenue, in Atlanta. Representatives from Florida, Virginia, Arkansas, Louisiana, Rhode Island, West Virginia, Alabama, Maryland, South Carolina, Kentucky, North Carolina, Tennessee, Georgia, California, Ohio, Oklahoma, Mississippi, and Nebraska are scheduled to attend the conference. Numerous insurance industry representatives are also expected to attend. To view a copy of the meeting agenda click here http://www.floir.com/pdf/agendamulti-statecatfundmtg.pdf
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