• Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • News / Podcasts / Library
  • Contact
  • Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • News / Podcasts / Library
  • Contact
  • MENU

Citizens Pushing Higher Rates

SHARE THIS

Rate hearing considers cap changes, too

The Florida Office of Insurance Regulation (OIR) last week held a rate hearing for the state-backed Citizens Property Insurance Corporation to consider the carrier’s requested rate increase, which includes a proposal to eliminate the statutorily-mandated 10% “glide-path” rate hike cap on new customers.  Citizens seeks an overall statewide rate hike of 7.3% (an HO-3 multiperil average of 6.1%) with the largest individual policy rate increase to be capped at 10%.

During the more than three-hour hearing, Citizens actuaries noted there were no rate decrease indications anywhere in their filing, due to the discrepancy between uncapped rates (with an overall indication of a 29% increase) and capped rates (with an overall indication of a 7.3% increase).  Citizens is proposing to eliminate the 10% cap on new customers, with the exception of Monroe County (the Florida Keys) which would have a 20% rate increase cap on new customers because of the lack of a competitive insurance market there.  If approved by regulators, the cap proposal would increase rates for new customers by an average of 21%.

From Citizens Property Insurance Corporation

Citizens is seeking the change due to that very rate discrepancy, which is driving more and more business into the state’s so-called “insurer of last resort” making it increasingly the “insurer of first-resort.”  In the past year, Citizens’ policy count has grown by more than 100,000 (from 443,444 to 551,613 by February 28, 2021, an increase of 26.4%).  Citizens is now receiving more than 3,000 new customers per week and expects to add a total of nearly 150,000 policies this year.

“The reality is, the marketplace in Florida is shutting down,” Citizens President Barry Gilway told Insurance Commissioner David Altmaier, who personally presided over the hearing.  Gilway noted that some insurance companies are no longer writing or renewing policies in some areas and placing greater coverage restrictions on other policies.

OIR actuaries questioned the basis for revising the 10% cap to apply only to renewing customers going forward.  Belinda Miller, a former OIR general counsel who is now interim general counsel for Citizens, said the Florida statute capping annual increases can be interpreted as only applying to existing Citizens customers.  The legislature this session is also seeking remedies for Citizens’ policy growth, including a measure that would eliminate the 10% annual rate hike cap for new customers after July 1 as well as owners of non-homesteaded property, such as second homes (see Bill Watch in this edition).

Our firm and those associated with us stand beside Barry Gilway.  To say that Mr. Gilway is an industry leader is an understatement.  His commitment to all Floridians is to be admired.

OIR will take written comments from the public through March 26 and make a decision on the rate request sometime this spring.  You can view Citizens rate hearing presentation slides and watch a recording of the hearing here.   We also offered some additional background going into this hearing in our last newsletter.

LMA Newsletter of 3-22-21

SHARE THIS

Tags: Barry Gilway, Belinda Miller, Citizens Property Insurance Corporation, David Altmaier, Florida Homeowners Insurance Market, Florida Office of Insurance Regulation, Florida Property Insurance

“Another great Newsletter on Florida industry this week.  Your service and advocacy in Florida is very important to keeping me updated and apprised of the Florida insurance laws, trends and overall environment.  Something similar is very much needed in Louisiana, too.”

Jennifer Tedesco, Esq., Claims Director
Pharos Claims Services
Orlando, FL

“I have followed your weekly newsletter and podcasts and now have a full appreciation for what you bring to this industry.  You are an inspiring force, plain and simple.  I wanted you to know that you make a difference.  Thank you for all you do!”

Jeffrey Karam, CPCU
Bradenton, FL

“Lisa this is another great newsletter, and we appreciate the time and energy you put into these informative updates – you are on top of these topics!”

Mike Graham, CEO
Smart Vent Products, Floodproofing.com, & Risk Reduction Plus
Juno Beach, FL

“Great article on Risk Rating 2.0!”

Austin Perez, Senior Policy Representative for Federal Housing, Valuation, Insurance and Commercial Issues
National Association of Realtors
Washington, D.C.

“Just a quick note to let you know how much I have appreciated your newsletter over the years and the assistance they offer for those in the field of claims. We depend on the information more than you will ever know!”

Laurie Rasberry, Chief Claims Officer
Acorn Claims
Prosper, Texas

“Your newsletter is fabulous!  I greatly appreciate the topics you expose, so that insurance professionals like myself can keep up with the latest events that affect the public we serve and ourselves.”

Cynthia Hoehn, Independent Property & Casualty Personal Lines insurance agent
Clermont, FL

“Lisa Miller is a true champion for the insurance industry, with her regular updates! We appreciate all you do and keeping us up to date on priority issues!”

Gillian Lloyd, Account Executive
Zywave
Milwaukee, WI

“Thank you Lisa for staying on top of, as well as advocating, for Florida residents and legislative reform. Your newsletters are very informative and enjoy reading the points of view.”  

Shawna Miller, Sr. Claims Quality Assurance & Compliance Manager
Florida Peninsula Insurance Company
Jacksonville, FL

“Just wanted to say that I thoroughly love your newsletter. It’s is always informative and insightful to the ins and outs of our industry.  You are an inspiration and an important asset in the insurance world.  Keep up the great work!” 

Cynthia Scott, President
University Insurance Group
Davie, FL

GET THE LATEST UPDATES IN YOUR INBOX FOR FREE!

SUBSCRIBE NOW

READ THE LATEST LMA NEWSLETTER ONLINE NOW

READ NOW

331 N. Monroe Street
Tallahassee, FL 32301
(850) 222-1041
[email protected]

*DBE certified through affiliate Lisa Miller Consultants

© Copyright 2008 - 2023
Lisa Miller Associates
All Rights Reserved
Managed by SiteBolts