Sink: Cabinet Should Manage the Cat Fund
CFO Alex Sink was expected to talk to Tiger Bay in Tallahassee on Wednesday about her new idea about the best way to manage the state's catastrophe fund. Maybe the Florida Cabinet, not the Legislature, should manage it.
Since the Legislature only meets in the Spring, that gives insurers, like Florida Farm Bureau, the excuse to say they didn't know that the Legislature was going to do anything with reinsurance before they went out and bought their reinsurance. If the Cabinet managed the catastrophe fund, they could tinker with the catastrophe fund, if need be, during the fall season, before reinsurance contracts go out.
"There's a big January open window period in the global reinsurance market, although some companies buy in June," Sink said.
"It's not a budget issue. So it makes sense to me to have the Financial Services Commission, in the fall, establish the rate and contract issues," Sinks said.
Sink added that she just came up with the idea and has yet to float it by the Legislature of even the rest of the Cabinet.