Florida Approves Insurers Taking Over Citizens Policies
In a significant move to address the challenges in the state's insurance market, Florida has approved the transfer of policies from Citizens Property Insurance Corporation to private insurers. This decision comes as part of a broader effort to reduce the number of policies under Citizens, which has grown to become the state's largest insurer due to the reluctance of private companies to cover properties in hurricane-prone areas.
The Florida Office of Insurance Regulation (OIR) recently approved the assumption of approximately 350,000 Citizens policies by five private insurers: Slide Insurance, Safepoint Insurance, Southern Oak Insurance, Florida Peninsula Insurance, and Monarch National Insurance. This move is expected to help stabilize the insurance market by spreading the risk and reducing the burden on Citizens, which is seen as a last resort for homeowners unable to find coverage elsewhere.
The transition of policies to private insurers is not without its challenges. Policyholders may face higher premiums and need to adjust to different coverage options and service levels. However, the state's insurance regulators believe that this shift will ultimately lead to a more competitive and resilient insurance market in Florida.
The approval follows a series of reforms aimed at strengthening the insurance sector, including measures to combat litigation abuse and encourage private insurers to re-enter the market. As Florida continues to navigate the complexities of its insurance landscape, the focus remains on ensuring that homeowners have access to affordable and reliable coverage.
