Citizens seeks approval for substantial homeowners insurance rate increases in 2022-23 [Miami Herald]
With thousands of new policies a week pouring into
The Citizens
The 11% increase would need approval from the state
“Why don’t we go for the 11% and call it a day?” board Chairman
The decision, which came after little board discussion and no public input during a meeting in
In the past, Citizens was prevented from passing along increases of more than 10% a year to individual policyholders — a concept that has become known as a rate “glide path.” The new law (SB 76) gradually increases that cap to 11% in 2022, 12% in 2023 and ultimately to 15% in 2026.
Citizens, which was created as an insurer of last resort, has seen massive growth during the past two years as financially struggling private insurers have dropped policies and sought large rate increases from regulators.
As of Friday, Citizens had 747,654 policies. By comparison, it had 532,788 policies on
Citizens President and CEO
“When they’re unprofitable, they want to write less business,” Gilway told the board Wednesday. “That’s what’s happening.”
Gilway also said Citizens’ rates are “ridiculously competitive,” typically charging less than private carriers.
State leaders have long sought to shift policies from Citizens to the private market, at least in part because of potential financial risks if major hurricanes hit the state. But in parts of
The Citizens staff recommendation going into Wednesday’s meeting would have led to an average 8% increase in 2022 for what are known as “personal lines” accounts. That included the average 7.3% hike for homeowners, along with increases for condominium-unit owners and renters.
It is unclear whether the
©2021 Miami Herald. Visit miamiherald.com. Distributed by Tribune Content Agency, LLC.
Fed Pivots Toward Tackling Inflation, Forecasting Three Rate Hikes In 2022
Genworth Completes Redemption of Outstanding 2023 Senior Notes
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News