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Thursday, November 2, 2023
Citizens Insurance to Transfer 125,000 Policies
Four private insurance companies received state approval to move policies, though the actual number will likely be lower. Slide will take the most – up to 75,000.
TALLAHASSEE, Fla. – On Tuesday, Florida regulators approved proposals by four insurance companies to take as many as 125,000 policies from Citizens Property Insurance Corp., the state “insurer of last resort,” in January. The number of policies that shift from Citizens to the private insurers likely will be lower than the approved totals.
Insurance Commissioner Michael Yaworsky signed the four orders, part of what is known as a “depopulation” program aimed at shrinking Citizens.
According to information posted on the Florida Office of Insurance Regulation website, the orders allow:
Slide Insurance Co. to assume as many as 75,000 policies from Citizens
Florida Peninsula Insurance Co. to assume as many as 30,000 policies
Edison Insurance Co. to assume as many as 10,000 policies
US Coastal Property & Casualty Insurance Co. to assume as many as 10,000 policies
State leaders have long sought to move policies from Citizens into the private market, in part because of concerns about financial risks if a major hurricane or multiple hurricanes hit Florida. Under Citizens, all Florida residents share in the risk should a major event occur.
Citizens saw explosive growth during the past three years as many insurers dropped customers and raised rates because of financial problems.
As of Friday, Citizens had 1.331 million policies, according to its website – but that number is down from 1.412 million earlier in October because five private insurers assumed 99,773 Citizens policies in mid-October as part of the depopulation program.
Regulators also approved a series of proposals by private insurers to take out additional policies in November and December.