The state backed insurer has said that it believes that it will be able to shrink to a smaller size than previously believed.
Citizens Property Insurance has now received another wave of shedding homeowners insurance policies from regulators, and the company has now revealed that it will be able to reduce its size by more than what it had once thought.
This latest round could allow the insurance company to shed an additional 93,500 of its policies.
The state backed homeowners insurance company can now rid itself to up to 93,500 policies by allowing private insurers to take them out or acquire them in March. The insurer made this announcement only a couple of days after Barry Gilway, the chief executive officer of Citizens, informed lawmakers that he has now released a revision of a previous forecast with regards to how many insurance policies Citizens will be holding onto in the future because those properties are considered to be uninsurable by private companies.
The previous projection had been that the company would maintain 650,000 homeowners insurance policies.
That figure has now been reduced to a range that will fall between 525,000 and 550,000 insurance policies.
When speaking to the House Insurance & Banking Subcommittee, Gilway explained that “The appetite for Florida domestic (insurance) companies has increased dramatically.” He also went on to add that “I would have told you a year ago that nobody was going to write a mobile home in Florida that was produced in 1994 and prior.” Furthermore, he explained that there is now a company called Mount Beacon, in Florida, which has concentrated on mobile homes within the state that were built in or before 1994.
At the time of the writing of this article, it was estimated that Citizens held approximately 661,000 home insurance policies. Comparatively, Gilway said that about two years ago, that figure had been 1.47 million.
What’s more, Gilway also expressed that Citizen’s possible exposure as a result of a catastrophe or natural disaster has reduced by over $510 billion, in order to bring it to a current estimated $200 billion. Leaders in Florida had been making a concerted effort to shrink the number of homeowners insurance policies held by Citizens over concerns with regards to the financial risks that came with them.