TypTap Insurance Company, the homeowner’s insurance subsidiary of HCI Group, Inc., has received approval from the Florida Office of Insurance Regulation to assume up to 25,000 policies from Citizens Property Insurance Corporation, the Florida state-backed insurer.
The assumption falls under Florida’s legislatively mandated depopulation program designed to encourage private companies to assume policies from Citizens.
The number of policies to be assumed by the company is expected to be finalized in December.
Paresh Patel, HCI’s Chairman and Chief Executive Officer, commented, “TypTap has leveraged internally developed technology enabling it to grow organically in Florida.
“With the operating environment improving in Florida, we see an opportunity to supplement TypTap’s existing business through the Citizens depopulation program.”
Although Citizens policyholders are entitled to reject the assumption in some cases or move their business to another company, law in the state is designed to match Citizens policyholders with insurers interested in removing their policy from Citizens and providing coverage.
The residual market insurer’s in-force policy count has been on the rise as insurers and reinsurers have pulled back from the region’s property market amid rising losses and elevated loss costs.
Earlier this year, full-stack insurtech Slide Insurance revealed approval for an up to 100,000 takeout of policies from Florida’s Citizens.
So, while some continue to retreat from the market, it seems that Florida is becoming more attractive to certain insurers, although Citizens’ policy count is still very high, suggesting more takeouts are needed.
