Thousands More Citizens Policies Go To Private Market

June 15, 2017

Up to 19,520 Citizens Property Insurance policies will be offered to a pair of private companies in August, the state Office of Insurance Regulation announced.

Southern Oak Insurance will be able to select up to 15,000 policies, of which 10,000 will be coastal accounts, and National Specialty Insurance can acquire up to 4,520 coastal accounts on Aug. 22.

All of the policies will be offered through what is known as the “takeout” process. The process has been a key part of the Citizens’ strategy to move policies into the private sector, reducing the state-backed insurer’s risks. Most of the newly targeted policies, however, are expected to remain with Citizens, as private firms have historically sought to pick up the least-risky policies.

Citizens customers also can opt to reject offers from private insurers.

Of the 57,724 policies that have been offered through the “takeout” process this year, 12,276 have shifted hands. As of April 30, Citizens had 451,126 policies, down from 451,189 at the end of March and 455,843 on Dec. 31.

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Written by William Reynolds · Filed Under News