Citizens may continue to grow as Florida’s market demand wanes: ALIRT – Artemis.bm

The remaining insurance market in Florida, or the last insurer, Citizens Property Insurance Corporation, may return to the history of popular and managed policies, if the “significant disruption” of the Florida property insurance market continues and the desire of the business market to take risks. there are leftovers.

This is according to ALIRT Insurance Research, whose CEO David Paul writes in a paper that the rest of the insurance market is facing many problems at the moment.

Paul’s paper addresses Florida, a state where insurance problems are well-documented, California, a state that is experiencing a resurgence in recent years of wildfires and its exposure to weather-related events, and Louisiana, another marine insurance market that has experienced its own challenges, especially since hurricane seasons. the latest, is Texas, which is actually the state with the lowest residual market share and the best business market, according to ALIRT.

But Florida remains the most contested example of a property insurance market with residual support from an agency designed to serve as the state’s insurer of last resort.

As we reported recently, Florida’s Citizens Property Insurance Corporation (CPIC) recently surpassed 1 million points, the first time it has reached that level, in terms of points, since 2013.

In his report, Paul from ALIRT Insurance Research suggests that this growth will continue, with the potential for Florida residents to set new records for future growth.

Citizens in Florida is already the largest market for the rest of the government in the United States, and given the problems the government has faced with property insurance terms recently, it is not surprising Citizens are growing.

Although Citizens has been very large in the past, ALIRT shows one difference today, the lack of interest from the private insurance and reinsurance market in taking on many of the risks exposed by Florida wind.

“The big difference today is that there are few insurers (new or existing) who want to enter the crisis market,” Paulo writes.

It goes on to explain, “This is in stark contrast to what happened after 2004, when 47 dedicated Florida homeowners insurance policies were established over the next decade.”

If nothing changes in Florida, Paul of ALIRT expects the population growth to continue.

New evidence of how Florida has struggled today, United (UPC) announced that its largest carrier is about to enter, which was the only carrier that could handle the Citizens guarantee so far and indicated that it would be completed. being another option that is failing to have a significant impact on the property insurance market in the state.

Paul concludes, “Without major changes in the market, CPIC could easily see the number of policies/insurers that exceed 2011 as insurers and reinsurers continue to vote with their feet.”

And he concludes that Florida is, “An insurance market that is at high risk, where Citizen’s is the leading homeowner’s insurance company, the level of interest is very low, and the small group of dedicated homeowners is shrinking due to insolvencies and exits from the market. “

Insurance rates can be a major deterrent for Florida residents to add more coverage as they grow older.

In the latest revision, the survivor may get a smaller refund program than expected, as the rates were deemed too high.

As it grows more, the cost of reinsurance may not be decreasing very quickly, without changes in the law in Florida, which means that the authorities of Florida Citizens may find some reforms as difficult.

Read all of our news and analysis of the Florida insurance and reinsurance market.

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