Hurricane Irma will generate up to 70,000 claims and about $1.23 billion insured losses to the Citizens Property Insurance Corporation, according to initial estimates presented to Citizens’ Board of Governors.
The national carrier’s surplus is amply capitalised to deal with these losses and still retain a remaining budget of $6.4 billion for future storms.
Citizens’ coastal account is backed by reinsurance, however, the expected losses from Hurricane Irma won’t trigger any recoveries – Florida Citizens has been downsizing significantly and shedding policies over the last couple of years, and thus reducing exposures to natural catastrophe’s in the region.
The carrier has personal and commercial lines accounts which aren’t reinsured in the private market, and given the hurricane’s track up the Western Florida coast and the widespread damage across the peninsula, Citizens losses are likely split across all accounts – meaning the spread of losses has likely meant that Citizens hasn’t hit its private reinsurance layers which sit on the coastal side.
The Florida Hurricane Catastrophe Fund is expected to reimburse Citizens for $193 million in losses.
Chris Gardner, Chairman of Citizens Board of Governors, said; “much hard work and preparation over the last few years has paid off during Citizens initial response to Hurricane Irma.
“However, given the magnitude of reported claims, we are sure to encounter unforeseen challenges. We will continue to learn, prepare and improve our response capabilities with each storm situation.”
As of Wednesday, Citizens said it received 45,681 claims, the bulk of which came from Miami-Dade 36%, Monroe 15.4% and Broward Counties 14.9%.
