Florida Regulator Nixes Citizens Request to Remove Rate Cap on New Business
New policyholders coming into Florida’s insurer of last resort will not face higher rates than existing insureds under an order issued by the Florida Office of Insurance Regulation.
The regulator’s decision comes after Citizens Property Insurance Corp. President & CEO Barry Gilway said at its rate hearing last month that it is receiving about 5,000 new policies per week as the Florida market continues to tighten.
Under the order signed by Insurance Commissioner David Altmaier, Citizens homeowners multi-peril policy rates will increase by an overall statewide average of 3.2% while commercial residential multi-peril policies will increase by an overall statewide average of 4.8%. Citizens filed increases for these lines of 6.2% and 7.8%, respectively.