The insurer has announced that it will no longer write new policies or renew existing coverage in the state.
Farmers Insurance Group has announced that it will no longer be writing or renewing existing auto, umbrella or home insurance policies.
This decision will impact about 100,000 customers across the state that is already facing a coverage crisis.
The auto and home insurance company made its decision only one day after Florida Chief Financial Officer Jimmy Patronis threatened to take action against the insurer if it proceeded with its plan.
Hearing rumors @WeAreFarmers might pull out of Florida. If that’s true my office is going to explore every avenue possible for holding them accountable. Don’t get to leave after taking policyholder money. Can’t write auto if you’re not doing homeowners either. Zero communication!
— Jimmy Patronis (@JimmyPatronis) July 10, 2023
“Hearing rumors @WeAreFarmers might pull out of Florida,” said Patronis in a recent tweet. “If that’s true my office is going to explore every avenue possible for holding them accountable. Don’t get to leave after taking policyholder money.”
At the time this article was written, a spokesperson for Patronis was still declining to explain precisely what type of action he planned to take to hold the insurer accountable for its decision to stop selling auto and home insurance policies in Florida. Instead, all questions were directed to the Office of Insurance Regulation, where Patronis is Chief Financial Officer.
Farmers submitted a market reduction notice for its auto, umbrella and home insurance business.
The Florida agency said that it was in receipt of a “market reduction notice from Farmers Insurance Group,” according to an email from communications director Samantha Bequer. “OIR is reviewing the notice in accordance with applicable Florida Statutes.” Bequer added that she was unable to offer further information because the notice was labeled as a trade secret and was therefore not included in public record laws in the state.
“This business decision was necessary to effectively manage risk exposure,” said Trevor Chapman, a spokesperson for Farmers following the announcement that the company was dropping the auto, umbrella and home insurance policies.
It will impact the 100,000 policyholders covered under one of the Farmers lines. That said, it will not affect the remaining 70 percent of policies that the insurer sells in Florida under its other brands, according to Chapman. “Affected customers will receive notifications detailing when their coverage will end and will be advised of options for replacement coverage.”
