The Florida insurance crisis is only expected to get worse, according to new data released by insurance analysts. NBC6’s Chris Hush reports
Florida regulators on Tuesday approved proposals by four insurance companies to take as many as 125,000 policies from the state’s Citizens Property Insurance Corp. in January.
Insurance Commissioner Michael Yaworsky signed four orders that are part of what is known as a “depopulation” program aimed at shrinking Citizens.
The orders will allow Slide Insurance Co. to assume as many as 75,000 policies from Citizens in January; Florida Peninsula Insurance Co. to assume as many as 30,000 policies; Edison Insurance Co. to assume as many as 10,000 policies; and US Coastal Property & Casualty Insurance Co. to assume as many as 10,000 policies, according to information posted on the Florida Office of Insurance Regulation website.
The number of policies that shift from Citizens to the private insurers likely will be lower than the approved totals. But state leaders have long sought to move policies from Citizens into the private market, at least in part because of concerns about financial risks if a major hurricane or multiple hurricanes hit Florida.
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Citizens has experienced explosive growth during the past three years as many insurers have dropped customers and raised rates because of financial problems.
Citizens had 1.331 million policies as of Friday, according to its website. But that number was down from 1.412 million earlier in October because five private insurers assumed 99,773 Citizens policies in mid-October as part of that depopulation program.
Regulators also have approved a series of proposals by private insurers to take out additional policies in November and December.
