Transparency. 
Speed of Settlement. 
Efficient Capital.

EARNINGS & SURPLUS PROTECTION

Overview of Program

  • Protection for the impact of multiple storms on earnings and surplus.
  • Florida is divided into either 2 sections or 3 sections. If ANY of the anemometers in that section meet or exceed the pre-determined wind speeds during a national weather service Named Storm, the corresponding limit is then made available. Most significant storms have a high probability of triggering more than one section.
  • Coverage is available as either reinsurance or through the appropriately licensed entity in financial form. In Financial Form there is the potential for positive basis risk.
  • Coverage can inure to the Insurance Company, Captive, or Holding Company.
  • Suitability for Rating Agencies and Regulatory Bodies: Both already accept the carriers retaining this risk on their balance sheet, risk transfer should be viewed upon favorably
  • Transparency: Wind Speeds can be monitored in real time (Subject to cellular availability)
  • Rapid Settlement and no “Black Box” 

 Included in the program is a data license for Weatherflow’s Storm Print product. More information here.

example

HORIZONTAL LEVERAGE ON CAPITAL

$15 million retention, TRI-Section 6 Tier Payout Option 2 with 2 pre-paid reinstatements:

22.90 ROL SECTION A

25.25 ROL SECTION B

15.90 SECTION C

21.35 BLENDED ROL

Spend $3,202,500 (net) potential first dollar protection of $45 million. 

Florida Split State: Tri-Section 

Florida Tri-Section Split State: 4 Tier Payout 

Coverage is triggered if the selected 60 second sustained wind speed is met or exceeded at ANY of the anemometers.

Florida Tri-Section Split State: 6 Tier Payout 

Coverage is triggered if the selected 60 second sustained wind speed is met or exceeded at ANY of the anemometers.

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Florida Split State: Bi-Section 

FLORIDA BI-SECTION SPLIT STATE: 4 TIER PAYOUT 

Coverage is triggered if the selected 60 second sustained wind speed is met or exceeded at ANY of the anemometers.

FLORIDA BI-SECTION SPLIT STATE: 6 TIER PAYOUT 

Coverage is triggered if the selected 60 second sustained wind speed is met or exceeded at ANY of the anemometers.

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* The Saffir-Simpson Scale is calculated at the standard meteorological observation height of 10 meters (33 feet) over unobstructed exposure. Due to the urban locations of some of the anemometers, the above wind speeds have been increased to convert to an equivalent wind speed at the Saffir-Simpson observation height.