Florida has set up a property insurance clearinghouse designed to offer consumers an alternative to state-backed Citizens, raising the prospect of greater private insurance and reinsurance buying in the Florida market.
The clearinghouse’s purpose is to identify private-market insurance options for consumers who presently regard Citizens as their only insurance option. The clearinghouse promises greater access to the growing private insurance market in the state.
The clearinghouse is currently supported by four local insurance companies. A further seven insurers will be added in March, five in May and four in July as Florida ushers in a stepped increase in private involvement in the state’s insurance market.
The companies that will take part in the clearinghouse arrangement are:
January 27, 2014
United Property & Casualty
March 10, 2014
Bankers Insurance Group
Tower Hill Signature
May 10, 2014*
Southern Fidelity Property & Casualty
July 13, 2014*
Avatar Property & Casualty
Universal North America
Citizens reduced its risk exposure in 2013 by $3 billion through depopulation and risk transfer. This development looks set to continue that trend. Speaking with Bermuda:Re earlier in the year Sharon Binnun, Citizen’s chief financial officer said that 277,000 policies were returned to the private market in 2012. The clearinghouse will continue this trend.
The clearinghouse promises to provide consumers with access to a private market that will deliver “personalised and comprehensive coverage options”, lower assessment risk and will help drive down the exposure and assessment risks facing Citizens.