“I’ve no selection within the matter, as a result of Citizens is a quasi-state company created by the legislature to supply a market of final resort for policyholders that may’t get protection for no matter motive within the personal sector,” Donelon mentioned.
Local news station WBRZ reported that the rate enhance impacts greater than 120,000 policyholders upon renewal of their insurance. For new policyholders, the brand new rate enhance takes impact January 01 subsequent 12 months.
Donelon has inspired policyholders with Citizens to pick out extra inexpensive insurance choices.
“I feel the pain of my constituents and would urge them to continue shopping for alternatives to Citizens because this increase doesn’t go into effect until January 1. So, if they can get coverage between now and January 1, that will never hit them,” the commissioner commented.
The commissioner has additionally acknowledged that he’s trying right into a plan that will welcome extra insurers into Florida, noting that he carried out an identical measure following Hurricanes Katrina and Rita. The resolution helped depopulate Citizens’ policyholders.
“We have been approached by several [companies] who have been reading about and seeing the flood of policies to Citizens and the prices that by law citizens has to charge,” he mentioned. “Companies know that they can get those policies off of Citizens and on to their books with the premium that comes with it in a quick and relatively short period of time.”
With Citizens already above the a million policyholder mark, there are issues that the insurer might probably hit two million inside the 12 months, or by the top of 2022.
Read extra: Could Florida’s final resort insurer Citizens hit two million insurance policies?
“Citizens is now going to probably get to two million policies because of [insurance companies] non-renewing here,” mentioned Crawford international president of community options Kenneth Tolson in an interview with Insurance Business.
Insurance Business reached out to Citizens, which mentioned that it tasks hitting 1.2 million insurance policies by the top of 2022.