Florida Approves Major Policy Transfers from Citizens to Private Insurers

The Florida Office of Insurance Regulation (FLOIR) has approved Southern Oak Insurance Co. to assume 50,000 policies from Citizens Property Insurance Corp., including 45,000 personal residential multiperil policies and 5,000 residential wind-only policies. This transfer is expected to complete by year-end. Additionally, American Integrity Insurance Co. received approval to take over 1,500 personal residential multiperil policies, with the transaction anticipated around September 16, continuing its active role in Citizens depopulation efforts that began with earlier approvals in May and prior large-scale policy assumptions in 2023 and 2024.

These approvals are part of a broader regulatory strategy to reduce Citizens' policy count, aiming to rebalance Florida's property insurance market by promoting private market participation. Earlier in the year, three other insurers were authorized to assume over 135,000 Citizens policies collectively. Citizens' policies have declined significantly from over 1.4 million in 2023 to around 820,000 by mid-2024, demonstrating the ongoing impact of these depopulation initiatives.

This trend coincides with recent stability signals in Florida’s personal property insurance sector. Industry reports highlight the market achieving its first underwriting profit since 2016. This turnaround is attributed in part to legislative reforms and the successful transfer of risk from the state-backed Citizens program to private insurers. The overall effect aligns with policy goals to strengthen private sector involvement and reduce reliance on Citizens as a residual market insurer.

State regulators continue to oversee and facilitate these policy transfers, underscoring a regulatory focus on market balance and risk dispersal. Southern Oak and American Integrity’s expanded participation exemplifies private carriers stepping into roles traditionally held by Citizens, impacting market dynamics and competitive positioning. Monitoring ongoing depopulation outcomes remains critical for evaluating regulatory effectiveness and market health.

This development signals a measured shift in Florida’s property insurance landscape, influenced by coordinated regulatory actions and evolving insurer engagement. The depopulation process is pivotal in managing risk exposure while fostering market competitiveness, which stakeholders across the insurance industry should watch closely.