Florida’s Citizens Property Insurance Sees Policy Count Drop to All-Time Low

Florida’s state-backed insurer of last resort, Citizens Property Insurance, has reached a record-low policy count of 278,662, a significant decrease from the 1.41 million policies held in October 2023. This reduction is attributed to aggressive depopulation strategies and legislative reforms passed in 2022 and 2023 aimed at stabilizing the private insurance market. For the property insurance sector, this shift signals a potential return of private capital and a reduction in the state's financial exposure to catastrophic hurricane losses.

Citizens Property Insurance President and CEO Tim Cerio announced that the insurer’s policy count fell to 278,662 as of last Friday, marking what officials herald as a record low and an all-time low for the organization’s probable maximum loss. This figure represents a dramatic turnaround from October 2023, when the count stood at 1.41 million policies due to widespread financial instability in the private market that forced homeowners toward the state-run carrier. Cerio credited the decline to strategic depopulation efforts and legislative reforms that have encouraged private carriers to take over policies, thereby reducing the state's overall risk exposure.

The legislative changes enacted in 2022 and 2023 specifically targeted the high costs of insurance-related litigation, which had previously driven many private insurers out of the Florida market. Additionally, the state has benefited from a year without major hurricane impacts, allowing for a softening of homeowners insurance prices and the entry of new carriers into the state. Florida Insurance Commissioner Mike Yaworsky recently characterized the current market as the healthiest it has been in at least a decade, noting that well-capitalized companies are now better prepared for the upcoming hurricane season.

To further sustain this momentum, Governor Ron DeSantis recently signed SB 1028, which establishes a new clearinghouse for commercial policies and allows surplus lines insurers with strong financial ratings to participate in policy takeouts. While officials anticipate that policy counts may eventually rise again, Cerio noted that the new legal framework should ensure that any future fluctuations are gradual rather than the drastic spikes seen in previous years, such as the peak of 1.48 million policies reached in 2012. This stability is intended to protect consumers and maintain the viability of the private market while keeping Citizens as a true insurer of last resort.