TAMPA, Fla. (WFLA) — The Florida Office of Insurance Regulation (FLOIR) recently revealed that as many as 100,000 policyholders of Citizens Property Insurance might see a change to Tampa-based company Slide Insurance by the end of October.
Initially established as Florida’s last-resort insurer, Citizens Property Insurance has now become the state’s largest private insurance provider, leading to an accelerated transfer of homeowners policies.
Michael Peltier from Citizens Property Insurance noted, “The current shift within Florida’s insurance market is indeed promising.”
FLOIR’s letter confirmed Slide’s authorization to potentially acquire up to 100,000 policies from Citizens. However, the actual number of policies transferred could differ.
Peltier explained, “This recommendation follows a comprehensive assessment of Slide’s financial strength and stability, qualifying them to undertake these policies.”
Policyholders under Citizens might receive a proposal from Slide by late August. Responses will be expected by the first week of October, and the policy changes will be effective from October 17.
Peltier outlined the process: “Slide will carefully review our policies and portfolio, selecting the ones that align best with their program. They will then communicate directly with the policyholders through letters.”
Slide’s actual number of offers may not reach 100,000, as they were previously sanctioned to take over 25,000 Citizens policies, but ended up extending around 24,000 offers.
Peltier expressed his view, saying, “The approval of up to 100,000 policies by OIR is an optimistic signal, even though the exact number is uncertain. It suggests a healthier market.”
Concerns about potential premium increases have arisen.
Peltier addressed this by stating, “Recent transitions have shown that the offers have often matched or even undercut the current Citizens rates.”
However, some hold a more cautious perspective.
Ron Assise, Senior Vice President at The Horton Group, an insurance brokerage, mentioned, “Current Citizens policyholders might perceive this change negatively and could face initial higher costs.”
Assise pointed out that when homeowners receive alternative insurance offers within 20% of their current premium, they are no longer eligible for Citizens. As a result, he anticipates a rise in rates for many.
Nevertheless, Assise emphasized the necessity of depopulating Citizens policies, noting, “While this shift might bring about increased costs for some, the reduction of Citizens policies is essential.”
Ultimately, the transition to Slide or another insurer does not guarantee higher premiums, and Assise reminded that Citizens was never intended to be the most affordable option.