Florida’s state-run insurer Citizens Property Insurance Corporation is set for an outside review as it looks to further reduce its footprint since the last external study was published five years ago.
In August 2019, Senator Jeff Brandes, R-St. Petersburg, challenged the company to look at ways to further reduce its policy count, which at the time was 420,000.
At its peak in 2011, Citizens covered 1.5 million policies – with exposure that topped $512 billion.
In the event of a 1-in-100-year storm, Floridians were on the hook for $11.6 billion in assessments.
Since then, the insurer has eliminated the risk of assessment in a 1-in-100-year storm and reduced its policy count through depopulation efforts, an invigorated private market and legislative reforms to reduce unnecessary litigation and assignment of benefits abuse.
The board first discussed the issue at its September meeting. On Wednesday, board members agreed with Citizens staff to move forward.
“Senator Brandes is right. We should continue to look at ways to improve for our policyholders and stakeholders,” said Citizens Chairman Bo Rivard. “We agree the timing is right and look forward to seeing where it leads us.”
“We still believe it is appropriate to examine what might be necessary to get Citizens exposure to an even lower level,” said Barry Gilway, Citizens President/CEO and Executive Director.
