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More Citizens Policies Headed To Private Insurers
December 6, 2014
Citizens Property Insurance Corp. isn’t slowing efforts to move its least-risky customers into the private market.
The Florida Office of Insurance Regulation announced Friday that it had approved a new round of private-insurer “takeouts” of Citizens policies. Five companies were put in line to receive up to 132,941 residential policies in February from the state-backed Citizens.
The companies are American Colonial Insurance, Anchor Property & Casualty Insurance, Heritage Property & Casualty Insurance, Homeowners Choice Property & Casualty Insurance and Mount Beacon Insurance.
Of the policies that could change hands, up to 132,441 will be for coverage on single-family properties and 500 for commercial residential properties. OIR previously announced that more than 182,000 policies now in Citizens will be available to be picked up by nine private carriers during the first two weeks of January.
In both cases, the overall number of policies eventually shifted is not expected to reach the approved maximum. For 2014, regulators approved 1.1 million policies for private “takeout,” yet as of Nov. 20, the number moved out of Citizens stood at 185,405. The difference comes as private companies cherry-pick the least-risky policies and often go after many of the same customers. Also, the policyholders targeted for takeout have the option to remain covered by Citizens.
The takeout efforts, along with the start of an electronic clearinghouse aimed at moving property owners to the private market, has also helped to accelerate the reduction of Citizens policies.
Citizens, which two years ago had 1.47 million policies, was down to 926,517 policies on June 1, representing a total exposure of $293 billion.
On Tuesday, Citizens announced that since June 1 the company had seen a further reduction in its policy count, to 727,125, with exposure dropping to $229.2 billion.
Comments
2 Responses to “More Citizens Policies Headed To Private Insurers”
The problem is some of these “take out” companies do not have the ability to pay if we have a catastrophic hurricane.
They certainly have the ability to collect premiums but they will just fold up, declare bankruptcy and leave policy holders holding the bag.
Do your research people. I have opted out of about four of these yeng yang companies so far…
Give me a financially solvent option to Citizens and I will consider it
How much longer then do we have to keep paying into this “citizen tax”. Nobody is helping me pay my bills.