An absolute nightmare waiting to happen in the State of Florida. Any agent who writes coverage through this quasi-governmental organization, should research selling a non admited A rated carrier first. Very scary scenario of what the state finances will be after a storm. Carrier assessments- bond issuance, and client assements will go unpaid, even the front end claims could go unpaid if a bad enough storm hits.
It’s worse than that. The OIR is reluctant to let a carrier take business out of Citizens, unless their rates are higher than Citizens, because supposedly, Citizens’ rates are far below what they should be. But who would voluntarily leave Citizens to pay a higher rate? So forget “depopulation” – it’s now a myth. Besides, most Floridians trust Citizens more than they do the private carriers. (the fact is, Citizens’ overall premium is insufficient to pay for catastrophe protection because of the immense concentrations – that doesn’t mean the individual policies, if picked out, would be underrated. Citizens has been packing away 1 billion a year in underwriting profit since ’08)
An absolute nightmare waiting to happen in the State of Florida. Any agent who writes coverage through this quasi-governmental organization, should research selling a non admited A rated carrier first. Very scary scenario of what the state finances will be after a storm. Carrier assessments- bond issuance, and client assements will go unpaid, even the front end claims could go unpaid if a bad enough storm hits.
It’s worse than that. The OIR is reluctant to let a carrier take business out of Citizens, unless their rates are higher than Citizens, because supposedly, Citizens’ rates are far below what they should be. But who would voluntarily leave Citizens to pay a higher rate? So forget “depopulation” – it’s now a myth. Besides, most Floridians trust Citizens more than they do the private carriers. (the fact is, Citizens’ overall premium is insufficient to pay for catastrophe protection because of the immense concentrations – that doesn’t mean the individual policies, if picked out, would be underrated. Citizens has been packing away 1 billion a year in underwriting profit since ’08)