In an ongoing effort to depopulate Citizens Property Insurance Corp., Florida regulators have given the green light for Orange Insurance Exchange to assume up to 15,000 policies from the state’s insurer of last resort.
This comes on the heels of approvals for other private insurers to take on a maximum of 220,035 policies, making a significant dent in Citizens’ massive portfolio.
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Citizens’ policy count ballooned in recent years due to financial woes in the private market, reaching around 1.25 million as of last week.
State leaders aim to shrink Citizens’ exposure to reduce the financial burden on taxpayers should a major hurricane strike.
This latest approval is part of a larger “depopulation” program, with regulators also green-lighting private insurers to take over an additional 413,808 policies in late October.
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While the actual number of policies transferred is likely to be lower than the maximum amounts, these efforts are a significant step towards a healthier and more balanced insurance market in Florida.
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