Christine Jordan Sexton
The head of Florida’s large state-created insurer called it a “bit infuriating” that a U.S. Senate committee recently demanded that Citizens Property turn over information about its ability to pay claims.
Late last month, U.S. Sen. Sheldon Whitehouse, the Chair of the Senate Budget Committee, late last month asked Gov. Ron DeSantis, Florida Insurance Commissioner Michael Yaworsky and Citizens for information about its ability to handle claims related to climate-created disasters such as hurricanes and whether it would need a federal bailout. The committee asked for a response by Dec. 21.
Tim Cerio, the Citizens CEO, told those assembled at the 2023 Florida Chamber Insurance Summit that “you can speculate” on why the request was made. He then added, “The bottom line is we are going to respond. We are going to be professional.”
Cerio said he was concerned that the request panicked policyholders.
“We will always be able to pay claims,” said Cerio, noting that Citizens can legally place surcharges on its policyholders as well as assessments on nearly all insurance policies in the state if the insurer does not have enough money in its accounts to pay off claims. And to reach that point, Cerio said it would take “one hell of a storm or series of storms.”
Cerio’s overall message to the summit was that the carrier was making progress in shedding policies as a handful of new companies entered the Florida market in the past year. He also said he had “cautious optimism” in the aftermath of the limits placed on lawsuits against insurance companies that were put in place by the Legislature in response to the state’s turbulent insurance market.
Citizens currently has about 1.22 million policyholders. Both Cerio and Christine Ashburn, Citizens’ chief of communications, legislative and external affairs, noted a trend of insurers assuming policies from the carrier — a process known as depopulation — and predicted it would continue in 2024.
Ashburn said carriers were “cherry picking” policies where they could assume risk and still make a profit, but she pointed out that the depopulation efforts were taking place in all parts of the state, including in counties where Citizens has a large policy count, such as in South Florida.
Ashburn also noted that while Citizens’ share of the Florida market was roughly 17%, it was still better than the situation in 2011, when the carrier had 23% of the overall market in the state.
11 comments
PeterH
December 14, 2023 at 1:02 pm
When a category 5 hurricane inflicts a direct hit on a major populated area in Florida…..believing that the Citizens Risk Pool insurer of last resort will bail you out is magical thinking!
Florida residents must have their own ‘plan b’ ready. You must have enough financial resources to turn your back on your destroyed property and relocate out of State.
Funny Thing 2050
December 14, 2023 at 7:57 pm
I’m not sure any of us believe that any insurance company will pay, at this point.
Dont Say FLA
December 14, 2023 at 3:19 pm
Depopulation efforts are taking place in all parts of the state? But sugary stupid Rhonda Dee constantly claims folks are moving TO Fleur D’uh in droves.
Anthony Dixon
December 15, 2023 at 11:13 am
Let them move! I am selling in a couple of months to leave this cesspool of a state – I want to sell my home for top dollar to whatever sucker thinks Florida is the answer.
Funny Thing 2050
December 14, 2023 at 7:56 pm
Florida has the ability to charge an assessment on Citizens customers if they have a catastrophic event. The kicker is, if that’s not enough, FL can charge every insurance policy holder in the state. That’s not just homeowners that’s every insurance policy holder (rental, car, home, business). Everyone pays. I’m not sure that most people know this.
Anthony Dixon
December 15, 2023 at 11:12 am
You are 100% correct – it’s extortion of everyone else that didn’t go with Citizens. This is one of the reasons I am leaving the state.
Sonja Fitch
December 15, 2023 at 6:10 am
Keep looking US Senate! Our two Florida Senators are in the pockets of profits for insurance. My introduction to Rick Scott was as CEO of Columbia/Humana in Broward County. When Scott got the insurance deal from Broward County Public Schools, Scott made the decisions to stop ALL TREATMENTS! Local unit president Died from stopping cancer treatment! No more!
Sonja Fitch
December 15, 2023 at 6:11 am
Moderation of Scott making decisions to kill people for money! Get real !
Anthony Dixon
December 15, 2023 at 11:11 am
What a shock! Citizens is offended because relying on policy holders from other insurance companies to bail you out is crap, and they know it.
What a crock of sh*t insurance has become in Florida – and the legislation is doing nothing about it.
Arthro
December 15, 2023 at 12:07 pm
This is politically motivated BS, an attempt to damage DeSantis. Truth is that Citizens has grown so much because of Charlie Crist. Nikki Fried knew that. Crist is the one who drove out the large national insurers, grew the number of inadequately funded start-up Florida domestic insurers, and made Citizens a competitor of private insurers instead of the insurer of last resort by capping Citizens rates. Will Senator Whitehouse propose a national catastrophe plan to subsidize Florida property insurance premiums? Because that will go nowhere. Nobody wants to subsidize Florida property insurance premiums.
Anthony Dixon
December 15, 2023 at 12:33 pm
DeSantis doesn’t need help damaging himself. He’s been ignoring the property insurance crisis his entire time of office
Comments are closed.