Citizens Policies Fewest Since 2019

TALLAHASSEE, Fla. — The policy count at the state’s Citizens Property Insurance Corp. has dropped to its lowest level in six years — and is headed toward the smallest number ever.

Citizens had 439,079 policies on Friday, down from 567,650 policies a week earlier, according to data posted on its website. That was the lowest total since October 2019, when Citizens had 419,475 policies.

“I think by early next year, we’ll see it somewhere between 300,000 and 400,000. … That will be back to the point where it’s the smallest it’s ever been,” Insurance Commissioner Michael Yaworsky told the Senate Banking and Insurance Committee last week.

Citizens spokesman Michael Peltier said Tuesday the policy count is expected to be about 385,000 by the end of this year, the lowest ever. The 419,475 policies in October 2019 was the smallest number since at least January 2012, according to data on the insurer’s website.

Last week’s decrease came amid another round of what is known as a “depopulation” program, which involves private insurers assuming policies from Citizens. Depopulation will continue in 2026, with the state Office of Insurance Regulation last week approving proposals by nine companies to assume policies in February, March and April.

Citizens was created as an insurer of last resort but, starting in 2020 and 2021, saw explosive growth as private insurers shed customers and raised rates amid financial problems. Citizens peaked at about 1.4 million policies in September 2023.

Lawmakers and Gov. Ron DeSantis approved changes to help shield insurers from costly lawsuits, which the industry blamed for the financial problems. Those changes, coupled with the depopulation program, have helped lead to steady decreases in the Citizens policy count over the past two years.

State leaders and Citizens officials have long sought to reduce the size of Citizens, at least in part because of financial risks if Florida gets hit with a major hurricane or multiple hurricanes. If Citizens couldn’t pay all of its claims, it could collect additional money from policyholders throughout the state — including possibly non-Citizens policyholders — to cover costs through what are known as assessments.

“By the end of this year, Citizens will reach the lowest policy count in its history, returning to its intended role as Florida's insurer of last resort,” Citizens President and CEO Tim Cerio said in a statement Tuesday. “A smaller Citizens not only signals a healthy private insurance market, it means more surplus to pay its policyholders' claims and a lower risk of financial assessments on all non-Citizens policy holders.”

Yaworsky, however, cautioned last week that the state needs to be careful with depopulation. At least in part, that is because Citizens will have less money coming in with fewer customers. Yet it will need to have enough money to pay claims of remaining customers if hurricanes hit.

“Those properties that will remain in Citizens will be the ones that are, for one reason or another, are the least likely to be insured by the private market, which generally means they’re too risky for one reason or another,” Yaworsky said. “So as we go through this process, it’s very important that we look at that takeout (of policies). It’s very important that we’re mindful that over-depop could actually trigger the assessment we’ve always tried to avoid.”

The depopulation proposals approved last week by the Office of Insurance Regulation likely will result in tens of thousands of policies leaving Citizens over a three-month period in 2026, though it remains too early to know the exact number.

Under the approvals, Slide Insurance Co. could assume up to 100,000 policies in February, March and April; Manatee Insurance Co. could assume up to 65,000 policies in February; Southern Oak Insurance Co. could assume up to 50,000 policies in February, March and April; American Integrity Insurance Co. could assume up to 32,579 policies in February; Florida Peninsula Insurance Co. and Mangrove Property Insurance Co. could each assume up to 15,000 policies in February; People’s Trust Insurance Co. could assume up to 10,000 policies in February; Universal North America Insurance Co. could assume up to 10,000 policies in February, March and April; and Patriot Select Property and Casualty Insurance Co. could assume up to 8,000 policies in February.

The numbers are maximums, and the actual totals of policies assumed likely will not be that high.

The depopulation program can have a downside for policyholders, who might see their rates increase. That is because of a law making customers ineligible to remain with Citizens if they receive offers of coverage from private insurers that are within 20% of the cost of Citizens premiums. For example, if a homeowner received an offer of coverage from a private insurer that is 19% higher than the Citizens premium, the homeowner would not be eligible for Citizens coverage.

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