Florida’s Citizens Property Insurance Publishes 2017 Rate Filing Information in Advance of Expected Board Vote Tomorrow
Jun 21, 2016
Pending approval today by its Actuarial and Underwriting Committee, Florida’s Citizens Property Insurance Corporation’s (“Citizens”) Board of Governors (“Board) will be asked to approve a 2017 rate package that reflects the impact of non-weather related water loss claims in South Florida, which Citizens describes as a “skyrocketing, troubling trend that appears to be spreading to other parts of the state.”
Earlier today, Citizens distributed a 2017 rate kit to provide information about its 2017 rate filing, including county-by-county estimates for particular policy types. Additional information and answers to common questions about the rates and premiums are included a section marked “Citizens 2017 Rates Frequently Asked Questions.” The kit also includes additional information about Citizens’ costs and projected rate need for 2017.
To access these materials, click on the hyperlinks below:
At the Board meeting, which begins at 10 a.m. (ET) tomorrow, June 22, 2016, the Governors will be asked to recommend rates for 2017 that call for a statewide average increase of 6.8 percent for Citizens’ personal lines policyholders – homeowners, condominium owners and renters.
To view the Board meeting participant call information and materials, click here.
Under the proposed rates, inland homeowners with multi-peril policies would see an average increase of 6.3 percent, while homeowners along the coast would see rates climb by an average of 8.6 percent. Notwithstanding these increases, thousands of Citizens customers will see rate reductions in 2017.
In its press release issued today, Citizens explained that affordable reinsurance and depopulation efforts over the past several years have reduced its policy count from nearly 1.5 million in 2012 to 490,000–a reduction the State-run insurer says has helped provide it with the ability to pay claims following a 1-in-100 year storm, as well as a second 1-in-16 year event without having to levy assessments.
Citizens is required by law to recommend rates that are actuarially sound, while complying with a legislative glide path that caps rate increases at 10 percent, excluding coverage changes and surcharges.
Next month (July), Citizens will submit its 2017 recommended rates to the Florida Office of Insurance Regulation, which must establish rates for Citizens before they take effect.
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