Cat fund concept appeals to New Jersey

New Jersey is one of several US states looking at pools or state-backed funds to help cope with high catastrophic loss exposure. Last month, Senator Stephen Sweeney reintroduced a bill that would lead to the creation of the New Jersey Catastrophe Fund, providing reinsurance cover in excess of an industry loss of about $2bn. Participating insurers would be able to choose between cover of 90%, 75% or 45%.