Meeting Packet, Insurance & Banking Subcommittee, Florida House of Representatives (February 4, 2025)
Summary
Meeting packet of the Florida House of Representatives Commerce Committee Insurance & Banking Subcommittee for Tuesday, February 4, 2025, 12:30 pm - 2:30 pm in Morris Hall. The agenda lists a presentation on Citizens Property Insurance Corporation by Tim Cerio, President, Chief Executive Officer, and Executive Director. The slides describe Citizens as a legislatively-created government entity, established in 2002, supervised by a nine-member Board of Governors. They state a Citizens Policyholder Surcharge of up to 15% and an Emergency Assessment of up to 10% per year, and include a table of depopulation activity for policies assumed in 2024 and 2025.
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“Meeting Packet, Insurance & Banking Subcommittee, Florida House of Representatives (February 4, 2025).”
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Insurance & Banking Subcommittee
Tuesday, February 4, 2025
12:30 PM - 2:30 PM
Morris Hall (17 HOB)
Meeting Packet
Daniel Perez Bradford Yeager
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Daniel Perez Bradford Yeager
Speaker Chair
Meeting Agenda
Tuesday, February 4, 2025
12:30 pm – 2:30 pm
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Presentation on Citizens Property Insurance Corporation:
• Tim Cerio, President, Chief Executive Officer, and Executive Director
V. Closing Remark
VI. Adjournment
214 House Office Building, 402 South Monroe Street, Tallahassee, Fl 32399-1300
(850) 717-4870
Florida House of Representatives
Insurance & Banking Subcommittee
Representative Bradford Troy Yeager, Chair
Representative Hillary Cassel, Vice Chair
Tim Cerio – President/CEO and
Executive Director
February 4, 2025
-
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~ ITIZ[~§
PROPERTY INSURANC
Residential Property Insurance Market
• Florida Office of Insurance Regulation (OIR) – State regulatory agency that provides oversight of insurance
industry and ongoing monitoring of the financial solvency of insurers.
• Citizens Property Insurance Corporation (Citizens) – Statutorily created insurer of last resort, absorbing
policies not able to be placed in the private market, with proven depopulation mechanisms in place to shift
policies back to private insurers over time.
• Florida Hurricane Catastrophe Fund (FHCF) – State entity that provides stable, predictable, and reliable
source of reinsurance for a portion of Florida residential property insurers’ hurricane losses.
• Florida Insurance Guaranty Association (FIGA) – Statutorily created to handle the liabilities of insolvent
insurance companies, ensuring orderly and timely payment of outstanding claims.
PRIVATE REINSURERS FHCF
PRIVATE INSURERS CITIZENS FIGA
- - -------.- ~~--------------~---------------------. ~
RESIDENTIAL
POLICYHOLDERS ~ ITIZENS
2 PROPERTY INSURANCE CORPORATION
Overview of Citizens
Citizens is a legislatively-created government entity, established in 2002, that provides residential
and commercial property casualty coverage for Florida property owners, as specified in Section
627.351(6) Florida Statutes.
Citizens operates pursuant to a Plan of Operation, reviewed and approved by the Financial
Services Commission and is also subject to regulation by the Florida Office of Insurance
Regulation.
The Corporation is supervised by a nine-member Board of Governors.
• The Governor appoints three members, including a consumer representative.
• The Chief Financial Officer, the President of the Senate, and the Speaker of the House of
Representatives each appoint two members.
• The Chief Financial Officer designates the Board Chair.
Citizens is self-funded and if a deficit occurs, it has the ability to assess its policyholders as well
as private-market property policyholders.
3
~ ITIZI~~
PROPERTY INSURAN
Eligibility
Under Florida law, Citizens may write a new insurance policy only for property that meets one of
the following eligibility criteria:
• Coverage is not available from a private-market insurance company.
• Premium for coverage from private-market insurance companies is more than 20%
higher than the premium for comparable coverage from Citizens.
In 2013, the legislature created a Property Insurance Clearinghouse to help identify private-
market insurance options for consumers who believe Citizens might be their only choice for
property insurance and to ensure that only customers who are eligible obtain coverage from
Citizens.
Citizens' Depopulation Program, authorized by Florida law, matches Citizens’ policyholders with
insurance companies interested in removing policies from Citizens and providing private-market
coverage. All companies assuming policies from Citizens have been approved by the Florida
Office of Insurance Regulation.
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PROPERTY INSURAN
Financial Resources
Conventional Resources Unique Resources
Collectively, Surplus from Prior Years Citizens Policyholder Surcharges
“Surplus” (up to 15%)
Net Investment Income
Emergency Assessments
Net Underwriting Income (up to 10%)
FHCF Reimbursements
Collectively,
“Reinsurance” Traditional Reinsurance
Capital Markets Reinsurance
5
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PROPERTY INSURAN
Assessments
Citizens Policyholder Surcharge
Up to 15% surcharge for all Citizens’ policyholders at new business or renewal.
Emergency Assessment
Charged if a deficit remains after the Citizens Policyholder Surcharge is applied. Up
to 10% per year on assessable statewide premium collected on new business or at
renewal. Collected until the deficit is eliminated. Includes all property insurance lines
except workers compensation, medical malpractice, federal flood, and federal crop
lines.
A $1.4B Emergency Assessment was levied after the 2005 Hurricane Season
(Hurricanes Dennis, Katrina, Rita, and Wilma). In 2015, the Legislature made a one-
time appropriation of $715M to end 18 months ahead of schedule.
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PROPERTY INSURAN
Strategic Imperatives
1. Depopulation – Promote depopulation and optimize access to
private-market coverage for Citizens’ applicants and policyholders.
2. Customer Experience – Understand and enhance the customer
experience by soliciting feedback, gauging satisfaction, and
optimizing service capabilities and touchpoints.
3. Prevent Emergency Assessments – Reduce or eliminate the
risk of emergency assessments for Citizens’ policyholders and all
potentially impacted Florida policyholders.
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PROPERTY INSURAN
Questions?
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PROPERTY INSURAN
Policy Count and Total Insured Value
1,600,000 $600,000
1 AO □ ,ooo
$500,000 ,-.
en
1,200,000 C:
.Q
.... $400,000 ~
C:
:::J
0
u
~
1,000,000
800,000 Res~ u I Ma ket $300,000
-
~
CJ)
:::J
0
Level ~
a. 600,000 "'O
$200,000 ~
~
ti)
400,000 C:
$100,000 ~
200,000 ~
$-
9 PROPERTY INSURANCE CORPORATION
Total Insured Value (TIV) Top 15 Counties
Top 15 Counties as of 12/31/24
Building TIV
County
Count in Millions
Miami-Dade 173,321 $67,1 97
Broward 120,388 $42,621
Pinellas 96,011 $41,852
Palm Beach 92,252 $39,677
TIV by ZIP Code Brevard 43,101 $18,452
>$0-$5M Hillsborough 43,076 $16,609
$5M-$10M Sarasota 27,922 $14,907
$10M - $20M Volusia 26,267 $11 ,789
$20M - $50M Orange 29,169 $11,090
~ $SOM - $100M Pasco 30,976 $10,663
1111 $1'00M - $500M Monroe 18,653 $10,496
11111 $500M - $1B Lee 24,917 $9,799
llll $1B+ Collier 8,587 $7,1 55
Hernando 18,452 $7,069
Saint Lucie 16,427 $6,683
t'r
...
- ~ . . _,,..,,.,
,, .,;: ~ ITIZENS
10 ., .. ;- ~ PROPERTY INSURANCE CORPORATION
~
Florida’s Residential Property Insurance Market
Latest Data
Others is comprised of:
1. Pups: Florida-only subsidiaries of major
national writers
2. Florida Based: Florida domiciled companies
where the majority only write in Florida
3. National writers
Notes:
1) Includes admitted insurers only 3) Percentages may not add up to 100% due to rounding
2) Based on insured value for policies with wind coverage 4) Source: Quarterly and Supplemental Reporting System Reports. FL Office of Insurance Regulation
~ ITIZENS
11 PROPERTY INSURANCE CORPORATION
Policies Return to Private Market
80 ,000
SB 2A Reform
Becomes
70 ,000
Effective
C:
60 ,000
...
.~
~
C/J
~
50 ,000
.!a
a::
40 ,000
~
--
z
0
C
~
30 ,000
0 20 ,000
()
10,000
0
Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 J~ 2024 Sep 2024 Dec 2024
Notes:
1.Personal lines includes policies from insolvent carriers.
2.Includes policies with wind coverage; 3.0% of new policies exclude wind coverage over the past year.
~ ITIZENS
12 PROPERTY INSURANCE CORPORATION
Policies Return to Private Market
Historical and Projected Depopulation
600,000
■ Personal Lines
500,000
■ Commercial Lines
"C
Q)
400,000 ■ Budgeted 2025
>
0
E
Q)
c::::
Cl) 300,000
Q)
·u
0
a_ 200,000
296,024
100,000
Removed
Policies
0
2011
53,577
2012
277 ,002
2013
365 ,767
2014
416,623
2015
272,785
2016
88 ,000
-
2017
34 ,008
2018
17,905
2019
10,084
2020
7,463
2021
2,814
2022
16,408
2023
275,324
2024
477,821
Budgeted
Projected2025
2025
296 ,024
Exposure (in millions) $1 4,474 $75,927 $11 2 ,265 $117,530 $64 ,830 $23,363 $7,435 $4,308 $2,181 $2,497 $1 ,027 $7,174 $113,375 $2 14,527
Note: Depopulation does not reflect opt outs after the date of assumption.
~ ITIZENS
13 PROPERTY INSURANCE CORPORATION
Depopulation Activity
Policies Assumed in 2024 and 2025
Assum 1:ion Date # OIRA · roved Chrnce Letters Mailed I #Assumed
1/23/2024 200 ,000 126,479 76 ,316
2/20/2024 39,000 27,652 15,713
2/27/2024 (CL) 850 437 321
3/19/2024 59,498 271879 22 ,209
4/23/2024 (CL) 400 246 150
Depopulation
Policy Count 5/21/2024 54,386 34,760 17,610
per 10 Mile 6/25/2024 (CL) 300 170 126
Hexagon
10/22/2024 410,008 308 803 237 :323
1 - 100
10/29/2024 (CL) 4,250 2,276 1,527
101 - 1,000
1,001 - 2,500 11 / 19/2024 235 ,035 103,248 57 ,355
2,501 - 5,000 12/17/2024 310,022 82 269 49 171
5,001-12,825
1/21 /2025 (CL) 3,800 320 TBD
2/18/2025 342 ,918 143,814 TBD
3/18/2025 (CL) 250 TBD TBD
3/25/2025 160,440 TBD TBD
Total 1,821,157 858,353 477,,821
Notes:
1) Policyholder Choice Letters Mailed indicates the number of depopulation letters mailed, one per policy. Multiple offers may be contained in a single mailing.
2) Number assumed refers to policies assumed on date of assumption.
3) The hexagon map shows all personal lines and commercial lines (CL) policies assumed through December 2024. ~ ITIZENS
14 PROPERTY INSURANCE CORPORATION
2023 Risk Transfer
Personal Lines Account
PML Retu rn 09/30/2023 PML with 10% LAE
Time
Single 899 ____. ______________________________ OEP AEP
122 109 2023 0.82% 0.91%
Trad 2023
2023 Trad 0cc Everglades
Agg
$1.211 Billion $0.039 Re II [2023
Billion 2023-2 Lightning $8.498 B 1.00% 1.12%
100 90
$0.450 Re
(40.3% of $3.006 B XS $2.020 B with FHCF, Sliver, (1.3% of Billion $0.300
$3.006 B
Evglds 2021-2 and Evglds 2022-1 inuring)
S: $2.939 (15.0% of
B with $3.006 Bxs
FHC F $6.486 B)
inuri ng)
68 62 ________.., Evetpldes Re ff 202 -2A Evergla 1.46% 1.61%
$0.325 BIiiion $0
61 ~ $5.961 B 1.65% 1.80%
52 47 - +--- $5.333 B 1.92% 2.1 3%
17 5.99% 6.71%
15 6.61% 7.35%
10 9 $1.1 24 8 10.47% 11.34% ~ ,;::
15
5 4 $0.353 B 22.14% 23.19% ~ CITIZENS
PROPERTY INSURANCE CORPORATION
2024 Risk Transfer
Combined Accounts – Prior to Hurricanes Debby, Helene, and Milton
PML Return
06/30/2024 PML with 10% LAE and 1.9% PR/CR, -0.7% CNR Growth Adjustment
---
Residential
n me CNR Res +CN R
Loss & LAE Single 8gg OEP AEP Loss + LAE Loss + LAE
$17.175 B 100 91 1.00% 1.09% $0.577 B $17.752 B
$15.087 B 82 75 1.22% 1.34%
$15.022 B 81 74 1.23% 1.35%
$14.077 B 73 67 1.37% 1.50%
with FHCF t.-..si
$13.593 B 69 63 1.45% 1.59% Trad 0cc L3
$0.343 Billion
(17.2% of $2.000 B
(22.5% r:i $2 000 B
xs $7.644 B with FHCF
r,llhl''Q]
xs$1l319Bl
$11.593B 54 49 1.85% 2. 02% Trad 0cc L2 Everglades Re 112024-1B
$0.380 Billion $0.425 BIiiion
(19.0% of $2.000 Bxs $5.644 B
with FHCF inuring)
$9.593 B 42 38 2.38% 2.64% Tr.i · Dec L1
$0.397 Billion
$8.093 B 34 30 2.97% 3.29%
$7.971 B 33 30 3.02% 3.35%
Sliver
$0.630
Billion
(100.0% of
$0.630 B
XS $3.514 8
with FHCF
$3.514 B 14 13 7.06% 7.61%
$2.831 B 12 11 8.46% 9.13%
~ ITIZENS
16 PROPERTY INSURANCE CORPORATION
Questions?
17
~ ITIZI~~
PROPERTY INSURAN
Citizens Puts Policyholders First
Employee, Agent, and Policyholder Outreach
• Preparation emails sent to employees, agents, and policyholders.
• Targeted text messaging sent to policyholders in identified counties.
Legislative Outreach
• Emails to district legislative offices in the projected path of the storm.
Multimedia
• Sponsored radio messaging on the Florida Public Radio Emergency Network changed to storm
preparation reminders and Citizens’ contact information.
• Continuous social media and website content updates identifying storm-specific resources and info.
Catastrophe Response Center Activity
• 16 total centers opened
• 3,541 policyholders assisted
• 2,366 First Notice of Loss (claims) filings
• 1,419 Additional Living Expense checks paid totaling $5M
18
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PROPERTY INSURAN
Claims Process Outline
First Notice of Loss
-· ......................................... .
Claim report by policyholder or representative
Claim Assignment
Sent to IA firm based on cause of loss
..........................................·-
-...........................................
Desk Adjuster Review
Policyholder contact within 24 hours
Field Inspection Determi1
nation
.......................................... ·-
Based on loss severity
-...........................................
Claim Review
Review of inspection and repair estimate
Initial Claim Payment
Supplemental payments available with
..........................................·-
documentation and coverage confirmation
~ ITIZENS
19 PROPERTY INSURANCE CORPORATION
Flood Coverage Requirement (Senate Bill 2-A)
All new policies with wind coverage and an effective date on or after 04.01.23, and renewal policies with wind coverage
on or after 07.01.23, within the special flood hazard area (SFHA) as defined by the National Flood Insurance Program
(NFIP) must secure and maintain a flood insurance policy.
Most homes with wind coverage must secure and maintain a flood policy according to the following schedule:
• Effective 01.01.24 - Policies with dwelling value (Coverage A) of $600,000 or more
• Effective 01.01.25 - Policies with a dwelling value of $500,000 or more
• Effective 01.01.26 - Policies with a dwelling value of $400,000 or more
• Effective 01.01.27 - All policies, regardless of value
Flood coverage must be secured from the NFIP or a private insurance carrier at the following limits, if available:
• Dwelling policies: Equal to or greater than Citizens’ separate Coverage A
Condominium unit-owner policies, tenant content policies, and policies that exclude windstorm or hail coverage are
not required to purchase flood coverage.
If the above limits are not available from the NFIP, Citizens will accept the maximum coverage amount for which the
insured is eligible. Maximum NFIP limits:
• Regular Program (i.e., final phase of a community’s participation): $250,000 Coverage A
• Emergency Program (i.e., initial phase of a community’s participation): $35,000 Coverage A
20
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PROPERTY INSURAN
2024 Hurricane Claims
Hurricane Hurricane Hurricane
Data as of 1/7/2025 TOTAL
Debby Helene Milton
Claims Received 3,077 14,777 58,771 76,625
Claims Closed 2,686 13,692 51,719 68,097
Closed with Payment 739 4,202 28,512 33,453
Closed without Payment 1,947 9,490 23,208 34,645
Closed (Below -Deductible)
- - - - - - - - - - - - - - - - - - -- _ -- --- - 279 2,949 9,700 12,928
•• Closed (No Coverage) 950 1,554 4,063 6,567
Closed (Claim Withdrawn) 236 924 3,583 4,743
Closed (No Coverage – Flood Loss) 199 2,957 932 4,088
Closed (Invalidated Claim) 125 511 2,189 2,825
Closed (Miscellaneous Reason) 126 401 2,193 2,720
Closed (No Policy Inforce) 25 157 411 593
Closed (Duplicate Claim) 7 35 130 172
Closed (Assumed Policy) 0 2 7 9
21
ITl~~fi~
PROPERTY INSURAN
Questions?
22
~ ITIZI~~
PROPERTY INSURAN
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