Quota Share Insurance Reinsurance in Florida
Quota share: proportional reinsurance sharing premiums and losses at a fixed percentage. Example: 60/40 split. Critical in FL due to hurricane exposure. Citizens Property Insurance uses quota share to distribute risk. Ceding commission: 20-35%. Considerations: percentage split, profit sharing, sliding scale, and catastrophe caps. Review annually for risk profile alignment.
How It Works
- Fixed percentage split (premiums + losses)
- Insurer reduces risk, increases capacity
- Reinsurer receives premium share
FL Property Insurance
- Hurricane risk management
- Citizens uses quota share
- Affects availability and cost
Key Terms
- Ceding commission: 20-35%
- Profit sharing, sliding scale
- Catastrophe event provisions
Related Terms
- Insurance — Risk coverage
Barnes Walker Insurance Law
Barnes Walker’s attorneys advise on reinsurance in Florida. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC