Citizens' policyholders could drop below 900,00 at end of year
TALLAHASSEE - Expecting a surge of policies going to private insurers, the state's Citizens Property Insurance Corp. could have fewer than 900,000 policies at the end of the year.
Citizens President and CEO Tim Cerio said Wednesday the policy count is projected to total 891,184 at the end of the year. In the past, Cerio said the policy count was expected to dip below 1 million.
Citizens had 1,257,924 policies as of Friday, but the projected decrease is tied to what is known as a "depopulation" program that shifts policies to private insurers.
State regulators have approved proposals by private insurers to take as many as 649,000 policies from Citizens in October and November, according to information presented Wednesday to the Citizens Board of Governors.
The actual number of policies moving to private insurers likely will be lower than the maximum. Citizens typically adds thousands of policies a week, but Cerio said increases in new policies have been lower than expected.
Citizens was created as an insurer of last resort, but it has become the state's largest insurer in recent years amid financial problems in the private market. Cerio said, however, the insurance market is recovering, resulting in private carriers taking policies.