Florida residual market insurer Citizens Property Insurance Corporation has now surpassed more than one 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 an average of 32,000 new policies to its portfolios each month through 2021.
The guess rate has risen in recent weeks as citizens now seem poised to eclipse the predictions they provided earlier this year.
Citizens had originally made a projection for the end of 2022 which suggested it would reach nearly 1.1 million policies in force by the end of the year.
Yet Citizens is already well on its way to hitting that number, once again surpassing one million fonts, reaching 1,000,624 by August 5, 2022.
In a recent briefing note, Triple-I CEO Sean Kevelighan said: “As insurers fail or leave, Citizens Property Insurance Corp is growing with business. Citizens had 931,357 policies in force as of June 30, 2022, compared to 638,263 policies in June 2021 and 474,630 policies in June 2020. Citizens could spend up to $100 million this year in litigation costs.
There appears to be a reasonable chance that Florida Citizens will exceed the 1.1 million policies it expected to have in its portfolios by the end of the year.
The rate increase over the past few weeks has caused many carriers to stop writing new policies in Florida for the time being, meaning the residual market has found itself home to a growing number of policyholders who cannot afford alternatives to the private market.
The citizens of Florida will be in a difficult position, because reinsurance prices are so high, they couldn’t buy the coverage they wanted during recent renewals.