Homeowners insurance exchange picks up momentum in Florida
Florida’s Citizens Property Insurance has been experiencing major renovations in recent years. The state-run organization accounts for the majority of homeowners insurance policies in Florida, but has been strapped with serious financial issues that have left it somewhat crippled. Florida lawmakers have been forcing change upon the organization in an effort to mitigate its financial risk. In some cases, this had led to higher homeowners insurance rates, but Citizens Property Insurance may soon offer affordable coverage for consumers through its new exchange.
Exchange could help depopulate Citizens Property Insurance
The organization has been working to build a property insurance exchange. This exchange will serve as a digital marketplace where homeowners can find the coverage they are interested in at a modest rate. Citizens Property Insurance plans to remove as many as 240,000 policies from its portfolio through the exchange, which will help mitigate costs and alleviate some of the financial pressure the organization has been dealing with for years.
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Financial pressure powers formation of exchange
Citizens Property Insurance already has a software provider for the exchange and is now seeking private insurance companies to offer coverage through the system. Insurers will offer policies through the exchange and be matched with homeowners that are interested in such policies. This is part of a larger initiative to depopulate Citizens Property Insurance and, thus far, the organization has moved some 145,101 homeowners insurance policies to private providers in the first seven months of this year.
Exchange to go live on January 1, 2014
Officials from the state-run insurer have met with 30 private homeowners insurance providers in the state. Some of these insurers have shown interest in participating in the exchange, but the majority has yet to take any action. State officials expect that as many as 15 homeowners insurance providers will sign up to participate in the exchange before it goes active on January 1, 2014.