24 January 2014News

Citizens’ downsizing continues

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

Ark Royal
Florida Peninsula
Safe Harbor
United Property & Casualty

March 10, 2014

American Traditions
Bankers Insurance Group
Federated National
Modern USA
People's Trust
Tower Hill Signature

May 10, 2014*

Olympus Insurance
Security First
Southern Fidelity
Southern Fidelity Property & Casualty
Southern Oak

July 13, 2014*

American Integrity
Avatar Property & Casualty
Capitol Preferred
Universal North America

*Pending confirmation

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.