In year 2002, a state legislature approved a law to create Florida property Insurance Corporation, worked as a non-profit making organization. This was the time when Hurricane Andrew overwhelmed the southern portion of the region.
This is a merger of two companies and their aim is provide their services for the house owners in the most danger areas. Florida Corporation also facilitates those house owners who were not capable to take advantage from other insurance companies. Both of the companies who joined hands to facilitate the population of Florida were state running insurance companies. We are not going to discuss both of them in detail. But we look on the conditions, when there is no name of Florida insurance Corporation means before its establishment.
The people of Florida were in a great trouble at that time because neither the insurance company allows compensating for the losses caused by natural mishaps like Windstorm etc. Basically Florida is situated near to the Pacific Ocean. That’s why hurricanes and other natural disasters are common in this area. To facilitate those people Florida comes in to existence.
This is a matter of appreciation for Florida Corporation that how it covers the eight thousand number of policies for their residents. In this way Florida Corporation becomes the second largest insurance Corporation of the state.
In the mean time chief operation officer of this state interviewed about the current situation and she passed the remarks that “growth become explosives in the last 18 months”.
The truthfulness’ of her remarks come forward when Florida Corporation released a report which includes that up to now they over come with $192 billion in regards to property. In the last 4 months of year 2002 Florida Corporation have 606,215 policies. In the mean time it had a liability of $2,400,020,398.
The outstanding growth of Florida Corporation was due to various factors. The quantity of their policies going to be increased because of new construction on costal areas. There is also an increase in the number of policies of Florida Corporation due to the lack of enthusiasm of other insurance companies.
The basis of Florida Corporation becomes weak for a while when four hurricanes attack at once the state. The estimation of total loss for only this incident costs to $1.77 billion. To come out of this huge loss Florida Corporation increases the price of their policy for windstorm up to 67%. This step brings fruitful result for Florida Corporation that touch up to $1.2 billion.