As St. Johns Insurance and Lighthouse Property Insurance Corp. announce the decisions, state lawmakers consider proposals to address the troubled industry.
TALLAHASSEE, Fla. – As another sign of problems in Florida’s property-insurance industry, two insurers said Tuesday they are halting writing new business in the state.
St. Johns Insurance and Lighthouse Property Insurance Corp. notified agents of the decisions, according to copies of the notices. St. Johns said in its notice that it has used “many strategies to manage our risks,” such as not renewing policies, using new rules for eligibility for business and making rate changes.
But it said, “At this time, St. Johns Insurance has made the difficult decision to suspend all new business writing statewide as of February 15, 2022 … This closure applies to all lines of business.”
The announcements came as state lawmakers consider proposals to address the troubled industry, which has shed policies and sought hefty rate increases to try to reduce financial risks.
The problems have led to a huge influx of customers at the state-backed Citizens Property Insurance Corp., which has been adding thousands of policies a week. As of Jan. 31, Citizens had 776,790 policies, about a 75% increase over the past two years.
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Author: marlam