Florida’s residual market insurer, Citizens Property Insurance Corporation, has now surpassed more than 1 million policies, the first time it has been at this level of portfolio exposure, in terms of policy count, since 2013.
Florida Citizens had added on average 32,000 new policies to its portfolios every month through 2021.
The rate of assumption has been increasing in recent weeks, with Citizens now looking set to eclipse the forecast it had provided earlier this year.
Citizens had originally made a projection for the end of 2022 that suggested it would reach almost 1.1 million policies in-force by year-end.
Yet Citizens is already well on the way to that figure, having now surpassed 1 million policies again, reaching 1,000,624 as of August 5th 2022.
In a recent issues brief, CEO of Triple-I, Sean Kevelighan, said, “As insurers fail or leave, Citizens Property Insurance Corp is swelling with business. Citizens had 931,357 policies in force as of June 30, 2022, up from 638,263 policies in June 2021 and 474,630 policies in June 2020. Citizens could spend as much as $100 million this year on litigation expenses.”
It appears there is a reasonable chance that Florida Citizens surpasses the 1.1 million policies it forecast it would have in its portfolios by year-end.
The elevating rate in recent weeks has caused many carriers to stop writing new policies in Florida at this time, meaning the residual market has found itself the home to an increasing number of policyholders that cannot afford private market alternatives.
Florida Citizens will be in a difficult position, as reinsurance pricing is so high they were unable to buy the cover they wanted at the recent renewals.