Florida’s state-backed insurer, Citizens Property Insurance Corp., anticipates a significant reduction in policyholders by the end of the year, potentially falling below 900,000 policies. This projection is driven by a “depopulation” program that encourages private insurers to take on policies from Citizens.
While Citizens currently holds over 1.25 million policies, state regulators have approved private insurers to assume up to 649,000 policies in the coming months.
The actual number transferred may be lower, but the decrease is expected to be substantial.
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Citizens, originally created as an insurer of last resort, has grown to become the state’s largest insurer due to financial troubles in the private market.
However, CEO Tim Cerio notes that the market is recovering, leading to private carriers taking on more policies. This positive trend, combined with the depopulation program, contributes to the projected decrease in Citizens’ policy count.
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Despite typically adding thousands of policies weekly, Citizens has seen lower-than-expected new policy growth. The year-end projection of 891,184 policies signifies a considerable shift in the Florida insurance landscape, with private insurers taking a more active role in providing coverage.
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