Nearly 100K Citizens Policies Approved For Private Market

August 9, 2014

The Florida Office of Insurance Regulation announced Friday that nearly 100,000 policies have beenm approved to be shifted in October from the state-backed Citizens Property Insurance Corp. to private carriers.

The companies approved to acquire the Citizens policies are Heritage Property & Casualty Insurance Company, SafePoint Insurance Company, Tower Hill Preferred Insurance Company and Weston Insurance Company.

The majority of policies would be inland personal-lines accounts, with coastal properties accounting for 12,449 of the targeted policies. The number of policies that actually move won’t reach the total approved by OIR. Past takeout efforts have shown that private companies cherry-pick the least risky policies and that companies often go after many of the same policies.

Since the start of the year, the state office has approved 466,572 policies for takeout, including those announced Friday. So far, 118,434 have been removed. Citizens had 933,422 policies as of June 30.

On February 10, the agency went under the 1 million policy mark for the first time since August 2006. Last month, Citizens President and Chief Executive Officer Barry Gilway said he expects the number of Citizens policies to reach about 850,000 later this year, with the number flattening out around 650,000 policies before the end of 2017.

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Written by William Reynolds · Filed Under News