Citizens insurance is dropping customers, some
say that's a good thing
The state-run insurer of last
resort has shed more than 300,000 policies since last fall. |
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Article Courtesy of FOX Channel 4 Southwest Florida
By Ryan Kruger
Published April 7, 2024
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Citizens Insurance continues to shrink the number of
policies on its books, but that’s all part of the plan.
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The state-run insurer of last resort
became the only option for thousands of Floridians in the
wake of Hurricane Ian and rising homeowner’s insurance
costs.
By the fall of 2023, Citizens grew to more than 1.4 million
policies.
“Citizens grew to an extreme level,” said Mark Friedlander
with the Insurance Information Institute.
Since then, the insurance provider has started depopulating
it’s rolls.
More than 300,000 customers were moved off of Citizens and
onto a private insurance company.
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“What this shows is, the private market is getting
stronger,” said Friedlander. “Private insurers are stepping up to take
on Citizens policies because they have the capacity for more risk.”
Meanwhile, there is still an investigation in D.C.
from the Senate Budget Committee over concerns that Citizens carries too
much risk exposure.
Despite the depopulation, Friedlander said Citizens is still adding new
customers but in much smaller numbers.
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