Florida International University (FIU), known for its hurricane research, is about to see a significant change. A bill recently approved by a Florida House subcommittee aims to transfer key hurricane-loss modeling responsibilities from FIU to Florida State University (FSU). This shift is part of a broader plan to enhance FSU’s role as a leading center for insurance research.
The bill, known as House Bill 1097, would move all duties, functions, and funding related to the public hurricane loss production model to FSU. This model is essential for insurers and regulators to understand the potential impacts of hurricanes, which frequently affect Florida. The state plans to allocate $5 million annually and an additional $1.5 million in one-time funding to support FSU’s Florida Catastrophic Storm Risk Management Center, which will be renamed the Florida Center for Excellence in Insurance and Risk Management.
State Representative Jennifer Canady, who sponsors the bill and is an FSU graduate, expressed her desire for the center to become a top-tier institution. The new center will collaborate closely with the Florida Office of Insurance Regulation on various research topics, including loss modeling and consumer protection. It will also produce an annual hurricane loss data summary and promote careers in actuarial science related to risk management and insurance.
While the bill has garnered support, the reason behind this transition remains unclear. FIU officials did not comment during the hearing, and attempts to reach them afterward were unsuccessful. However, some experts believe that this separation could benefit both universities. Hugh Willoughby, a professor at FIU, noted that much of the insurance research is already conducted at FSU.
The bill has passed the insurance subcommittee without opposition and is now headed to the House Budget Committee. A similar proposal is under consideration in the Senate. If approved, this change could enhance the way Florida prepares for and responds to hurricane-related risks, providing lawmakers with better information to make informed decisions.