Bermuda reinsurers, regulators and Finance Minister Paula Cox met with the state of Florida's chief financial officer Alex Sink last week to discuss options for boosting the state's catastrophe fund's capacity.

Ms Sink met privately with executives of RenaissanceRe, as well as representatives of the Association of Bermuda Insurers and Reinsurers, the Ministry of Finance and the Bermuda Monetary Authority, a spokesman for Ms Sink told Business Insurance.

Doubts have been raised by ratings agency AM Best about the Florida Hurricane Catastrophe Fund's ability to pay claims in the event of a severe hurricane.

As part of her two-day visit, Ms Sink aimed to determine how much catastrophe reinsurance would be available for the 2009 hurricane season, according to the spokesman for her office. In addition, Ms Sink said she was planning to make a proposal early next year on how to redesign the Florida catastrophe fund.

Earlier this month, Florida's Senate Banking and Insurance Committee released an issue brief suggesting the state's Legislature may need to consider alternative funding mechanisms for the cat fund given the uncertainty of the financial markets.

The fund's current obligation is about $28 billion, most of which is tied to bonds. But Florida's State Board of Administration, which oversees the fund, recently estimated a $10 billion to $15 billion bonding capacity shortfall, said Sam Miller, executive vice-president of the non-profit Florida Insurance Council.

The shortfall has left many Florida state legislators looking for ways to shore up the cat fund, Mr. Miller said.