Vita Jack E. Nicholson, Ph.D. 4871 High Grove Rd. Tallahassee, Florida 32309 Home Phone: (850) 893-2698 Cell Phone: (850) 445-2163 Email: [email protected] PROFILE • Research Faculty and Director of the Florida Catastrophic Storm Risk Management Center engaged in meaningful research projects expected to have an immediate impact on policies and practices related to catastrophic storm preparedness. • Record of success and achievement setting up, developing, and administering three high profile programs created in Florida statutes: - From the inception of the Florida Hurricane Catastrophic Fund (FHCF), led in its initial creation and further development for over 21 years as its Chief Operating Officer. The FHCF has a similar risk transfer purpose as private reinsurance and is designed to manage catastrophic hurricane risk for the State of Florida. The FHCF has a claims-paying capacity of $17 billion. - Provided the vision, guidance, and leadership for the creation of the Florida Commission on Hurricane Loss Projection Methodology. The Commission is an independent commission created to establish standards for both hurricane models and flood models. The Commission’s role also entails making findings regarding the acceptability of such models for both residential property insurance rate-making purposes and for the evaluation of insurer solvency (probable maximum loss calculations). The work of the Commission impacts over $11 billion of residential premiums in the state. - Implemented and monitored the ongoing compliance of the Insurance Capital Build-Up Incentive Program. The program was created in 2006 as a $250 million surplus note (loan) program funded by the State of Florida to encourage matching contributions in order to enhance the writing of residential property insurance in the state. • Top management experience in insurance regulation. • Ph.D. in Risk Management and Insurance. MBA in business. CLU and CPCU designations. • Academic research published in refereed journals and other publications. • Teaching experience at three major universities. • On-going connections and collaborative work with university faculty from diverse academic disciplines. • Member of the Advisory Council for the Florida Catastrophic Storm Risk Management Center at Florida State University and frequent participant in the various business, educational, and outreach events. Also, have made contributions to the Center’s research efforts. • Regular guest speaker at Florida State University College of Business (risk management and insurance program) and at the FSU College of Law. RECENT POSITIONS Director of the Florida Catastrophic Storm Risk Management Center, Florida State University, College of Business, Department of Risk Management/Insurance, Real Estate, and Legal Studies, August 7, 2017 to Present Consultant and Lobbyist, Catastrophe Risk Consulting, LLC – March 1, 2016 to Present Chief Operating Officer – Florida Hurricane Catastrophe Fund – September 7, 1994 to February 29, 2016 Board Member of State Board of Administration Finance Corporation1 President of the SBA Finance Corporation, appointed July 23, 1996 and resigned January 21, 20162 Page 1 of 25 Vita Member of the Florida Commission on Hurricane Loss Projection Methodology3 Commission Chair, 1995 to 1997 Committee Chair of the Acceptability Process Committee, 1997 to 2016 Committee Chair of the Flood Standards Development Committee, 2014 to 2015 Member of My Safe Florida Homes Advisory Council, 2007 to 2009 (Inactive Program)4 Member of Florida Catastrophic Storm Risk Management Center Advisory Council, 2007 to Present EDUCATION Ph.D., August 1980, University of Georgia Major: Risk Management and Insurance Related Field: Finance Dissertation: A Micro Model to Predict Workers’ Compensation Losses M.B.A., May 1974, University of North Dakota Major: General Business and Related Fields B.B.A., June 1971, University of Georgia Major: Risk Management and Insurance ACADEMIC INTEREST Risk Management; Enterprise Risk Management; Extreme Event Tail Risk; Individual, Group, and Societal Risk Choices and Decision Making; Modeling of Natural and Man Made Events; Optimistic Bias and the Impact on Public Policy Decisions; Risk Capital and Alternative Risk Financing; and Public Catastrophe Financing. EXPERIENCE August 7, 2017 to present Florida State University, College of Business, Department of Risk Management/Insurance, Real Estate, and Legal Studies, Tallahassee, FL Director of the Florida Catastrophic Storm Risk Management Center • Administers the Florida Catastrophic Storm Risk Management Center • Identifies and develops education and research grant funding opportunities among educational institutions in the state as well as in the private sector • Supports the state’s ability to prepare for, respond to, and recover from catastrophic storms • Organizes, sponsors, and participates in conferences, symposia, and workshops to educate consumers and policymakers • Areas of interest include storm forecasting, loss modeling, building construction and mitigation, risk management strategies, risk financing, and the development of state-wide catastrophic storm risk management policies. • Researches catastrophic storm topics, publishes, and disseminates findings. March 1, 2016 to present Catastrophe Risk Consulting, LLC, Tallahassee, FL Consultant and Lobbyist • Specializing in insurance, reinsurance, risk management, and government insurance and regulatory issues. Catastrophe Risk Consulting, LLC was created in February 2017. • Lobbying client is the Florida Chamber of Commerce • Academic research on the public financing of Florida wind risk September 7, 1994 to February 29, 2016 State of Florida, State Board of Administration, Tallahassee, FL Chief Operating Officer for the Florida Hurricane Catastrophe Fund Page 2 of 25 Vita • Duties and responsibilities include the leadership and management of the Florida Hurricane Catastrophe Fund (FHCF). The FHCF is a state tax-exempt trust fund that provides reimbursements for catastrophic hurricane losses to insurers writing residential property insurance in the state. The FHCF is a mandatory state program that operates similarly to reinsurance. • The FHCF is administered by the State Board of Administration of Florida (SBA) which is headed by an Executive Director (Ash Williams) to whom the Chief Operating Officer of the FHCF reports. During my tenure, the most recent Trustees of the SBA were Governor Rick Scott, Attorney General Pam Bondi, and the state’s Chief Financial Officer Jeff Atwater. The FHCF also has a nine-member Advisory Council consisting of consumer representatives, insurance industry representatives, and technical experts. • Operations involve a management team of 13 employees who direct and coordinate the activities of 163 other people including 92 service providers, 63 other SBA employees, and 8 Division of Bond Finance employees. This group of people is engaged in a number of complex activities including: developing reimbursement contract provisions, designing exposure data collection forms, developing a premium formula for ratemaking purposes (which involves both hurricane computer modeling and actuarial work), collecting exposure data, paying loses, examining exposure and loss data, formulating investment policy, issuing debt, dealing with and/or resolving legal issues, formulating and drafting legislation, lobbying on behalf of the SBA/FHCF, participating in educational and communication programs, and interacting with a variety of stakeholders, beneficiaries, and interested parties. Additional administrative functions include budgeting, internal audit and response, financial audit, financial and accounting matters, human resource activities involving evaluating, training/development, and hiring/recruiting, organizational wide strategic planning and enterprise risk management, and software and data base development for the FHCF. • The magnitude of the FHCF’s operations encompass the following: over $2 trillion of residential exposure is reported to the FHCF annually, the FHCF collects around $1.3 billion in annual premiums from 160 participating residential property insurers or about 13% of the overall residential premium in the state. The FHCF has a claims paying capacity of $17 billion and a projected accumulated cash balance of $13.8 billion for the 2016-2017 contract year as well as $2.7 billion of additional liquidity from pre-event notes. The FHCF paid over $9.58 billion in claims from hurricane events in 2004 and 2005 and a total of $9.7 billion since inception in 1993. Since 2006, the FHCF has engaged in $17.15 billion of various financial transactions including pre-event debt, post- event debt; a bond put options agreement, and the procurement of reinsurance. The annual operating budget is $7.4 million. • Other duties and responsibilities: - Board member and served as President of the State Board of Administration Finance Corporation which issues debt for the FHCF. As President was responsible for all operational, legal, and functional duties necessary for the issuance of debt. - Member of the Florida Commission on Hurricane Loss Projection Methodology since 1995. Chair of the Commission for the first two years (chaired 35 meetings) and since then Chair of the Acceptability Process Committee (19 meetings). The Commission is an independent panel of experts administratively housed in the SBA and funded as an administrative expense of the FHCF. The Commission creates standards and evaluates hurricane computer models for rate