Florida citizens exceed 1 million insured – Artemis.bm

Florida’s remaining insurance market, or the last insurer, Citizens Property Insurance Corporation, has now surpassed 1 million points, the first time it has been at this level since 2013.

In fact, it appears that Florida Citizens’ policy rate is moving much faster than previously predicted by insurance companies.

As we reported earlier this year, Florida Citizens added approximately 32,000 new points to its portfolio each month through 2021.

The risk of speculation has increased in recent weeks, as citizens are expected to hide their contributions earlier this year.

Citizens made a protest at the end of 2022 that they say will reach about 1.1 million points that will be in effect by the end of the year.

The chart below shows it in detail, with a forecast of about 1.1 million points:

But Citizens is already on the way to this number, as it has now passed 1 million points, reaching 1,000,624 as of August 5, 2022.

We’ve plotted the polls for Florida citizens as of the end of January 2021 in the chart below and it’s clear that the polls are on the rise again.

With another property insurer now heading into insolvency and all of its policies set to be liquidated in September, Weston, it looks like Citizen’s interest will continue to grow.

Also raising the price in recent weeks will be the fact that many carriers will stop writing new policies in Florida at this time, which means that the rest of the market can find itself as an additional home for policyholders who cannot afford other market options, we think. .

There appears to be a chance that Florida residents may exceed the 1.1 million points they predict they will have by the end of the year.

Citizens chief executive Barry Gilway raised his target to 1.2 million last month in a submission to the Insurance Council. This seems to be wise and necessary, because the carrier needs to be prepared to increase the size seen at this time.

Gilway said a reasonable forecast would be for citizens to have 1.55 million points by the end of 2023, while the worst-case scenario in the charts seen by Artemis would have reached 1.9 million if Florida’s property insurance market had not. stable.

Florida residents may be in trouble, with insurance rates so high they couldn’t afford the coverage they needed in the recent renovations and a disastrous bond market offering no comfort, or strength, either.

Just because Citizens is growing fast doesn’t make reinsurance profitable.

The only things that will achieve this for insurers, either is a reduction in risk, especially in high-rise coastal areas and low-rise areas, or if Florida solves its insurance litigation problem and restores confidence in reinsurance worldwide and capital . markets.

Right now, nothing seems very likely, at any rate.

Reducing Citizens, through the new deportation program, will not be possible until the case is resolved, because it will require the resources and attention of the dealers.

Currently, these cases are not reduced by the new changes in the law and it is expected that it will take time to benefit the market.

While the world’s insurance companies and disaster funders are also facing more frequent, catastrophic and climate-related disasters, on top of inflation, which is increasing their rates everywhere at this time.

Also, Citizens now has the additional burden of working as an interest in the failure of insurers.

All this indicates that Florida Citizens will grow, perhaps very quickly, swelling its exposure but not being able to drain, or to protect using reinsurance and market risk.

How many policies citizens have after one year is anyone’s guess at this point, but it could be enough to bring them back to a new record, the previous record being just over 1.472 million.

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

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