The Real Deal Miami

More Citizens customers rejecting policy transfers

Citizens has deliberately cut its policy count to about 585,000 from a peak of about 1.5 million

October 11, 2015 02:00PM

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More Citizen policyholders are rejecting coverage transfer offers.

More Citizens policyholders are rejecting offers to transfer storm coverage to private insurers.

More policyholders are resisting the transfer of their coverage from state-run Citizens Property Insurance Corporation to smaller private insurers.

Citizens, Florida’s largest property insurer, has been deliberately getting smaller through a so-called takeout program, under which Citizens transfers its least-risky policies to private insurers.

Citizens has reduced its policy count to about 585,000 from a peak of 1.5 million in 2012.

Policyholders can choose to stay with Citizens after notification of a pending switch in coverage, and more are doing so.

So far in 2015, more than 50 percent of the Citizens policyholders notified of a pending transfer of their coverage to another insurer stopped the switch and stayed with Citizens. In 2014, the comparable transfer-offer rejection rate was 30 percent.

The Florida Office of Insurance Regulation has approved transfers of a total of 130,000 Citizens policies in December to four private insurers: Anchor Property & Casualty Company, Heritage Property & Casualty Insurance Company, Olympus Insurance Company, and United Property & Casualty Insurance Company. [Palm Beach Post] — Mike Seemuth