Citizens Property Insurance Corporation Board of Governors, Committees to Meet in Miami This Week; Rate Cap Discussion Expected

This week, Citizens Property Insurance Corporation (“Citizens”) will hold several meetings of interest in Miami, Florida, including a July 27, 2012 Board of Governors (“Board”) meeting, the agenda for which includes a recommended vote on Citizens’ rates for next year and discussion of potential rate increases above the existing 10 percent rate cap for new business.

Citizens’ Market Accountability Advisory Committee, Consumer Services Committee, Depopulation Committee and Audit Committee will meet throughout the day on July 26, 2012.   A Finance and Investment Committee meeting previously scheduled for July 26 was cancelled.  To access the meeting materials for the respective Committee meetings, click here.

The Market Accountability Advisory Committee and the Consumer Services Committee will discuss a variety of issues relating to wind mitigation features and inspections.

At its meeting, the Depopulation Committee will review the Depopulation Summit Report, which can be viewed by clicking here.  The Committee also will hear several depopulation proposals from a variety of insurers.  The proposals are accessible at the following hyperlinks:

• Advocate Reinsurance Partners
• Trade Winds Mutual
• Tower Hill
• United Insurance Holdings Corp.
• Bankers Insurance Group

Included on the Audit Committee agenda are reports from Citizens’ Internal Auditor, Chief Financial Officer and General Counsel.

Citizens’ Board will discuss several items of interest, including rating issues and the impact of SB 408 on sinkhole premiums. Citizens issued an Executive Summary for Sinkhole Rates, which estimates that the changes made pursuant to SB 408 will “reduce Citizens’ expected incurred sinkhole losses and allocated loss adjustment expenses by 54.7%” for 2013. 

Additionally, the Board will review and discuss information relating to implementing actuarially sound rates for new business.  To view a summary of the proposal, click here. 

To access the complete list of Board of Governors meeting materials, click here.

Should you have any questions or comments, please contact Colodny Fass& Webb.

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