# A dip in the pool

Hurricane Charley has shown the value of the Florida Hurricane Catastrophe Fund, but it may also prove a timely example of pooled reinsurance as Tria comes up for renewal

Hurricane Charley may be second only to Hurricane Andrew in terms of losses, but the aftermaths for reinsurers of the two incidents are very different. Hurricane Andrew caused a capacity crisis in the reinsurance sector that only the new Bermudians were able to address. On a local level, in the face of uninsurable property in Florida, the government had to intervene. The Florida Hurricane Catastrophe Fund (FHCF) seems likely to cover most of the reinsurance requirement, beyond the retention held by insurers, according to AM Best.