R Street congratulates Citizens on lowering reliance on taxpayers
TALLAHASSEE, Fla. (Dec. 12, 2014) – The R Street Institute welcomed this week’s news that Florida’s state-run Citizens Property Insurance Corp. is prepared to enter the 2015 hurricane season ready to pay catastrophic storm claims without having to assess Florida policyholders.
Citizens is able to weather a once-in-a-lifetime storm due to expanded reinsurance coverage and a surplus accumulated over nine consecutive storm-free hurricane seasons. Additionally, its board has approved a recommendation for the company to purchase additional reinsurance coverage to handle a 1-in-100 year hurricane.
The news comes on the heels of Citizens reducing its customer base to below 1 million, with further reductions expected in 2015, as efforts to transfer policyholders to financially secure private companies continue.
“Florida has been very fortunate to see nine straight hurricane-free years, but Citizens’ staff and board also deserve credit for maximizing the benefits of this ‘hurricane drought,’” said R Street Florida Director Christian Camara. “Purchasing additional reinsurance is a wise investment that will further protect taxpayers and the state’s economy from potentially crushing assessments should Florida’s lucky streak run out next hurricane season.”