Citizens Rate Discussion Resumes
Rate levels for Citizens Property Insurance Corporation once again will be in the spotlight this week. The board of governors will hold a workshop to discuss Citizens’ rate levels for the upcoming year. Under Florida law, Citizens submits recommended rates to the Florida Office of Insurance Regulation, which then is responsible for approving Citizens’ final rates.
Citizens’ rate levels have received considerable attention in recent months. As policymakers consider ways to reduce the size of the residual market, a consistent theme has been that the admitted market is unable to match Citizens’ subsidized rates in some areas. While it is true that admitted market capacity remains limited in some areas, it is also true that in other areas Citizens is writing risks that otherwise might be attractive to admitted insurers.
The board’s upcoming workshop is expected to be of particular interest this time because it will mark the first such discussion since Barry Gilway has taken over as Citizens’ chief executive. Mr. Gilway is concentrating on reducing Citizens’ size but also has recently said that policyholders can’t withstand significant year-over-year changes in their rates.