Property Insurance: General

Florida domestics are once again a significant force in the Florida property insurance market, as they were prior to hurricane Andrew. Universal Property & Casualty Insurance is now the fourth largest hurricane insurer in Florida, behind Citizens, number one, State Farm, number two, and Allstate, number three. Universal has 6.8 percent of the market share or 364,000 policies.

The Office of Insurance Regulation reports that other Florida domestics have 2.8 million policies or 37 percent of the market. Domestic insurers have 3.2 million policies or 44 percent market share, compared to 1.3 million policies or 21 percent market share for Citizens; 16 percent market share or 1 million policies for State Farm; and 331,000 policies or 6.3 percent market share for Allstate. (This data is through the third quarter of 2007.)

Florida domestics’ market share is almost double what it was in 2005.

Florida OIR reports that 28 new property insurance writers came to the state from January 1, 2006, through December 31, 2007.

These are so-called “admitted insurers” whose rates are established by OIR. Another six surplus lines carriers began to write in the Florida market. These new players produced $3.65 billion in new capital, OIR reports. They are largely small Florida-based insurers, or domestics.

This expansion by domestics is fueled, in part, by the $250 million Capital Build-Up Incentive Program established by the 2006 Legislature, providing low interest capital loans to insurers under certain circumstances. In addition, smaller existing companies and start-up companies are not over-exposed like established and larger insurers and can selectively write new business. They are doing that, often at rates significantly lower than rates from Citizens Property Insurance Corporation.

Thirteen companies qualified for capital loans from the program, the Florida Association of Insurance Agents notes in Market Watch, February, 2008. These companies have the ability to write up to 1.7 million policies.

Citizens President Bruce Douglas: Florida domestics are writing new business and competing with Citizens. Citizens’ growth has been modest the last year, largely because of Florida domestic insurers. Almost 250,000 policies were removed from Citizens in 2007 and many more did not go into Citizens due to the level of private market activity, mainly among domestic companies.

Thirteen insurers qualified for loans totaling $247.5 million and helped produce $543.5 million in total new capital for the hurricane insurance market through the Insurance Capital Build-Up Incentive Program enacted during the 2006 regular session. They have assumed more than 1.7 million policies and become a key component of the newly-emergency domestic (Florida-based) property insurance market.

The State Board of Administration, which administered the program, provided this update, including the list of companies.

Domestics: Capital Build-up Incentive Program Companies

A Consumer White paper describing the impact of deficits on the policyholders of Citizens Property Insurance Corporation.

Prepared by the Florida Association of Insurance Agents.

http://www.faiavideos.com/citizens/docs/AssessmentWhitePaper9-26-07.pdf  

From the Florida Association of Insurance Agents 

Assessments currently being paid by Florida consumers for deficits from Citizens Property Insurance Corporation, the Florida Hurricane Catastrophe Fund and the Florida Insurance GuarantyAssociation.

Current Assessments

 

 

Florida Hurricane Catastrophe Fund. Number of residential insured risks through the state by county. Calendar year 2006 as of Dec. 31, 2006.

Insured Residential Property by County, as of Dec. 31, 2006


 


 

Florida Hurricane Catastrophe Fund reports on residential insured exposure throughout the state. This is excellent information based on detailed reports filed by insurers with the Cat Fund. This data is for calendar year 2007, ending December 31, 2006.

Insured Risks by County, 2005

Insured Values by County, 2005

Insured Risks by Zip Code, 2005



 


 

Florida Hurricane Catastrophe Fund reports on residential insured exposure throughout the state. This is excellent information based on detailed reports filed by insurers with the Cat Fund. This data is for calendar year 2007, ending December 31, 2007.

Dollar Exposure by County

Insured Risks by County 

Exposure by Zipcode