The Board received a presentation from Aon on catastrophe model results to help them establish the probable maximum loss for the Association for a hurricane season with a probability of one in 100 (1:100 PML). The Board considered estimates produced by four different catastrophe models, assigning equal weight to each to set the 1:100 PML at $4.236 billion for the 2022 hurricane season.
The Board also received a presentation from reinsurance broker Gallagher Re on reinsurance options to meet the Association’s required funding level. The Board directed TWIA staff to place a combination of cat bonds and/or traditional reinsurance in an aggregate amount totaling $2.036 billion (in excess of $2.2 billion in statutory funding) to bring the 2022 season’s catastrophe funding to $4.236 billion.