The state’s Citizens Property Insurance Corp. has dropped below 400,000 policies as efforts continue to move customers into the private insurance market.Citizens had 396,387 policies as of Friday, down from 436,165 policies a week earlier — and the lowest number since at least 2012, according to data posted on the Citizens website.Citizens officials have said the total could drop to 385,000 policies by the end of the year. Citizens was created as an insurer of last resort but saw explosive growth starting in 2020 and 2021 because of financial problems in the private market. It became the state’s largest insurer, with as many as 1.4 million customers in 2023.The number of policies has steadily declined during the past two years, at least in part because of what is known as a “depopulation” program designed to move policies into the private market. Also, officials say private insurers have been willing to write coverage after passage of a 2022 law that helped shield carriers from costly litigation.Many state leaders have long sought to shrink Citizens because of financial risks if Florida gets hit by a major hurricane or multiple hurricanes.
The state’s Citizens Property Insurance Corp. has dropped below 400,000 policies as efforts continue to move customers into the private insurance market.
Citizens had 396,387 policies as of Friday, down from 436,165 policies a week earlier — and the lowest number since at least 2012, according to data posted on the Citizens website.
Citizens officials have said the total could drop to 385,000 policies by the end of the year. Citizens was created as an insurer of last resort but saw explosive growth starting in 2020 and 2021 because of financial problems in the private market. It became the state’s largest insurer, with as many as 1.4 million customers in 2023.
The number of policies has steadily declined during the past two years, at least in part because of what is known as a “depopulation” program designed to move policies into the private market. Also, officials say private insurers have been willing to write coverage after passage of a 2022 law that helped shield carriers from costly litigation.
Many state leaders have long sought to shrink Citizens because of financial risks if Florida gets hit by a major hurricane or multiple hurricanes.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.