Florida-based insurtech HCI Group has laid out details of the reinsurance programs it secured for its insurance subsidiaries at the June renewals this year, which include significantly expanded coverage for TypTap Insurance Company (TypTap).
The 2022-2023 TypTap reinsurance program provides coverage up to $637.3 million for catastrophic losses in a single event in Florida, excluding flood losses.
The total coverage for all occurrences is $902.3 million, and the reinsurance retention for TypTap, excluding flood coverage, is $10 million for both first and second event.
This compares with last year’s tower, which provided coverage up to $452.4 million for a single event, with total coverage for all occurrences coming to $643.6 million.
The Florida Hurricane Catastrophe Fund component of the TypTap program is estimated to cover 90% of $360.8 million in excess of $155.4 million retention at a total estimated cost of $26.1 million.
HCI’s reinsurance tower for its other subsidiary, Homeowners Choice, provides coverage up to $935.7 million for catastrophic losses in a single event in Florida, down slightly from $967.6 million in last year’s program.
The total coverage for all occurrences remains the same at $1.33 billion, and the reinsurance retention for Homeowners Choice is $14 million for both first and second event, down from $16 million previously.
The Florida Hurricane Catastrophe Fund component of the program covers 90% of $573.0 million in excess of $246.7 million retention at a total estimated cost of $41.5 million.
Premiums for the private reinsurance component of TypTap and Homeowners Choice programs are $60.0 million and $72.6 million, respectively.
HCI also secured a third expansion states reinsurance tower that provides single event coverage up to $525 million outside of Florida. The total coverage for all occurrences is $1.03 billion, and the reinsurance retention for TypTap and Homeowners Choice is $10 million for both first and second event.
And a fourth all states tower provides $60.5 million of single event flood cover, including total coverage for all occurrences of $87.5 million and a retention of $3 million for both first and second event.
Premiums for these further towers are $54.2 million and $7.3 million, respectively, leaving HCI with total premium ceded of $247.3 million for the overall reinsurance program.
The panel of reinsurers contributing to the program include National Liability & Fire Insurance Company, Endurance Specialty Insurance Ltd., Munich Reinsurance America, Transatlantic Reinsurance Company, Swiss Reinsurance America, Arch Reinsurance Ltd., Chubb Tempest Reinsurance Ltd., Renaissance Reinsurance Ltd. and its affiliates, various Lloyd’s syndicates, and HCI’s own Bermuda-based reinsurance subsidiary, Claddaugh Casualty Insurance Company Ltd.
