Florida’s state-backed insurer of last resort, Citizens Property Insurance Corp., is expected to see a further reduction in its policy count in 2025 as the private insurance market continues to stabilize.
Florida Insurance Commissioner Michael Yaworsky recently approved proposals from three private insurance companies to assume up to 160,440 policies from Citizens in March. This follows a trend of similar approvals over the past several months, as Citizens actively works to decrease its policy count through a “depopulation” program.
READ: Gov. DeSantis, Florida Cabinet Approve $318M In Land Deals To Protect Nearly 87,000 Acres
As of Friday, Citizens held 982,892 policies. However, this number is projected to decrease further this week following a depopulation round approved in October. The latest approvals allow Slide Insurance Co. to assume up to 100,000 policies, American Integrity Insurance Company of Florida up to 35,000, and Trident Reciprocal Exchange up to 25,440 in March. It’s important to note that these are maximum numbers, and historical data suggests the actual number of policy transfers will likely be lower.
Citizens’ policy count peaked at 1.412 million last year amid financial instability in the private insurance market, which led private insurers to shed customers and increase rates. However, thanks to the depopulation program and legislative changes aimed at strengthening the private market, Citizens has seen a steady decline.
State leaders have long expressed concerns about the financial risks associated with Citizens’ large policy count, particularly in the event of a major hurricane or multiple storms. If Citizens were unable to cover all claims, it could levy assessments on policyholders statewide, potentially including those insured by private companies.
READ: House Homeland Security Chairman Demands Action On Unexplained Drone Sightings Across Northeast
Citizens President and CEO Tim Cerio recently highlighted the positive impact of a healthier private market, stating that new policy intake is 30% below forecast. “We’re certainly moving in the right direction,” Cerio noted during a recent Board of Governors meeting.
While the depopulation process benefits the overall stability of the insurance market, it can result in higher premiums for some homeowners. A state law mandates that Citizens customers accept offers from private insurers if the offered premium is within 20% of their Citizens premium.
The state also approved a separate depopulation round scheduled for February.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.