200,000 Citizens Policies Returned to Private Market
At a meeting of the board of governors of Citizens Property Insurance Corp., company officials announced that more than 200,000 homeowners insurance policies have been returned to the private market since January 1, 2005.
Together with the state’s Office of Insurance Regulation, Florida’s insurer of last resort negotiates with new or existing insurance companies with the goal of placing Citizens’ policies with private carriers. Removed policyholders with correct policy information receive discounted premiums under their new insurer, as Citizens is required by Florida law to charge the highest rates in each county.
In the first six months of this year, take-out efforts have resulted in the return of more policies to the private market than in 2004 and 2003 combined. More than 158,000 policies were removed in 2004, and more than 28,000 were removed in 2003.
Citizens’ Executive Director Bob Ricker emphasized the success of Citizens’ take-out program but noted that only around 30,000 of Citizens’ coastal policies, which cover only wind-storm damage, were removed. These polices were taken on by a single company: Miami-based Florida Peninsula Insurance.
“The number of high risk policies in Citizens continues to grow, which is why our take-out efforts remain so crucial,” Ricker said. “For every policy we can return to the private market, we are reducing the potential burden to all Floridians. In addition, policyholders who receive private coverage enjoy an immediate premium savings.”
Ricker said he would continue to work with state regulators and Florida lawmakers to return more high risk policies to the private market.
“We need to do more to encourage companies to take our riskiest policies,” Ricker said. “I’m committed to working with legislators and the Office of Insurance Regulation to develop even greater strategies to strengthen Florida’s insurance market.”
A chief mission for Citizens is to return insurance policies to private insurance companies.
Companies participating in this year’s policy returns include Argus Fire & Casualty, Atlantic Preferred, First Home, Florida Peninsula, Gulfstream, Security First, Southern Fidelity, Southern Oak and United Property and Casualty Insurance.