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Scott demands plan for shrinking Citizens Insurance

by John Kennedy | November 1st, 2011

Calls for revamping Citizens Property Insurance Corp., the state-run carrier for those who can’t find private coverage, has been a rite of spring in Tallahassee for years.

But Gov. Rick Scott on Tuesday is looking to accelerate that discussion — even as he still looks intent on finding a private company willing to take over Citizens, which now has 1.4 million policies statewide.

About half the homeowners’ policies in Florida are held by Citizens, which also is dealing with what actuaries say is 70 percent of the risk.  Coastal homes and condos, which face a high hurricane threat, form the bulk of the company’s line.

Meanwhile, Citizens is adding 4,000 to 5,00o policies a week — with private carriers continuing to cold-shoulder high-risk Florida homeowners, officials said.

“This is not something we can continue to do,” Scott told the Cabinet on Tuesday.

Scott wants the Citizens governing board to meet later this month and present a blueprint for Citizens’ future Dec. 6 to him and the Cabinet. The goal, he said, is simple:” “to shrink exposure.”

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3 Responses to “Scott demands plan for shrinking Citizens Insurance”

  1. Bill Newton - Florida Consumer Action Network Says:

    The goal of the Governor and the Board of Citizens should be to run Citizens to the best of their ability for the benefit of the people of Florida. Their agenda instead is to do the bidding of the private insurance industry and force prices through the roof. We can’t afford it.

    Citizens is proving it can provide insurance at a reasonable rate — better than the private market. The private markets are supposed to provide lower prices, but they do not. The way to offload some risk from Citizens is to buy reinsurance, just like a for profit company.

    Private reinsurance spreads the risk beyond Florida to international markets. If Scott truly wants government out of the market, he should end the subsidy of private insurers through the cat fund.

  2. Michael Says:

    The goal of the govenor is to make Florida a state where only the rich can afford to live. Increase every aspect of the cost of owning a home, driving a car, your FPL bill, insuring anything that moves (including youself) and so on and so on. Just look at New Jersey where the cost of living is not for the weak of wallet.

  3. Downtown Danny Says:

    At what point does the Republican party’s dismantling of every safety net for Floridians become criminal?
    Once they destroy Citizens we will have no private insurance companies willing to give homeowners insurance at any rate close to being affordable for working people. Then when a hurricane destroys thousands of homes not covered by any insurance what will the Republicans say then?

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