Citizens Insurance, Florida’s state-backed insurer of last resort, has significantly reduced its policy count this year, successfully moving approximately 355,000 policies off its books. A substantial portion of these, around 42%, have transitioned to private insurance companies as part of ongoing depopulation efforts aimed at lessening financial exposure for Florida taxpayers.
Key Takeaways
- Citizens Insurance has moved 355,000 policies this year, with 42% going to private insurers.
- Homeowners transitioning to private insurers may face significant premium increases.
- Lawsuit reforms are credited with stabilizing the market and increasing competition.
- Citizens plans to continue its depopulation efforts into 2026.
The Depopulation Effort
Citizens Insurance has been aggressively working to reduce its number of policies, a stark contrast to its peak of 1.4 million policies just a couple of years ago. The current policy count stands at 482,570. This strategy involves issuing "takeout" notices to policyholders, encouraging or requiring them to move to private insurance companies.
Financial Impact on Homeowners
While the depopulation aims to reduce risk for the state, it can present financial challenges for individual homeowners. One homeowner, Ramsay MacLeod, a fixed-income resident, reported receiving a takeout notice from Slide Insurance. Although the offer was capped at a 20% increase over her current Citizens premium, the resulting nearly $4,000 annual increase posed a substantial financial burden.
Market Stabilization and Competition
Mark Friedlander of the Insurance Information Institute attributes the success of these depopulation efforts to recent lawsuit reforms. These reforms have reportedly fostered increased competition and stabilized Florida’s previously volatile insurance market. This improved market condition now offers homeowners more choices than were available even a year ago, allowing them to shop for policies rather than being forced into a takeout offer.
Future Outlook
Citizens Insurance intends to continue its depopulation strategy, with plans to issue further takeout offers in 2026. The goal remains to further decrease its policy count and reduce its financial exposure.