The CEO declared that policyholders were given renewal at a “competitively priced” rate.
HCI Group, based in Florida, has taken over around 53,000 policies from Citizens, the state’s backup insurer.
The group’s major affiliate, Homeowners Choice Property & Casualty Insurance Company, was authorised by the Florida Office of Insurance Regulation to purchase 75,000 policies. There was an acceptance rate of 74% based on the 72,958 offers and 53,750 policies it anticipated.
We made proposals for policies that were earlier recognised by our algorithm as interesting policies for assumption’, stated HCI chairman and CEO Paresh Patel.
Homeowners Choice provided customers with “a competitively priced renewal policy and expanded coverage compared with their existing Citizens policy,” which he said was the reason for the “strong acceptance rate.”
Homeowners Choice has taken on about $196 million in in-force premium for Citizens insurance, as stated in a press statement from HCI.
Patel elaborated in an interview with the Sun Sentinel that the majority of these regulations apply to the counties of Palm Beach, Miami-Dade, and Broward. There are 13,000 policies for homeowners, 13,000 for condo owners, and 8,000 for dwelling and fire.
In the next several months, another HCI subsidiary will acquire additional insurance from Citizens. As stated in HCI’s release, TypTap Insurance Company will take over the policies in December 2023 and January 2024.
As the property insurance market in Florida experiences increasing pressure, Citizens has been seeking to reduce policies. Despite its humble beginnings as a last-resort insurance, it has grown to hold more than a million policies and an 18% market share.
Slide Insurance was authorised to accept up to 100,000 policies from Citizens in August, according to an announcement.
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