Citizens Property & Casualty Insurance Company’s rates continue to decline, reflecting a shrinking risk base as the number of policies declines and Florida’s property insurance market stabilizes.
The Florida Office of Insurance Regulation has set new pricing levels that will take effect July 1 for new business and renewals of existing policies, with regulators this week approving an average 8.8% rate reduction for homeowners’ multi-risk policyholders, including an average 5.5% reduction for wind power customers alone.
The cuts follow recent market reforms aimed at curbing litigation and strengthening insurers’ solvency, which have helped significantly reduce the number of policies held by citizens.
The insurer currently holds about 336,000 policies, down 76% from a peak of 1.41 million in October 2023, significantly reducing the need to transfer risk through reinsurance.
With its risk base shrinking, Citizens recently revealed that it aims to secure approximately $2.98 billion in private reinsurance coverage for its 2026 risk transfer program.
Coverage will include $1.53 billion of existing private risk transfers and $1.45 billion of new private risk transfers remaining in 2025, with budgeted premiums of approximately $350 million, according to the company.
In this case, Citizens explained that it would allocate 26% of the surplus to the 100-year event.
Tim Cerio, President/CEO and Executive Director of Citizens, commented: “Florida’s property insurance market is once again healthy and vibrant.
“As financially sound private insurance companies compete for their business, most Floridians now have many options. Citizens will continue to provide assistance to policyholders who are unable to obtain coverage in the private market.”
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