Florida regulators have approved the transfer of an additional 96,000 policies from Citizens, the state’s insurer of last resort, as part of an ongoing effort to reduce the company’s exposure and financial risk to taxpayers. This latest move is a continuation of a depopulation program designed to shrink Citizens’ book of business.
Steve Weinstein’s newly launched Mangrove Property Insurance is set to assume up to 81,040 of these policies, based on recent reports. The goal of this initiative is to shift policies from the state-backed entity to private insurers, thereby lessening the potential burden on taxpayers in the event of major catastrophes.
The program is designed to bring more private capital into the Florida insurance market, and to reduce the size of Citizens, which has grown significantly in recent years as private insurers have pulled back from the state due to increased risks.
The depopulation program aims to encourage private insurers to take on more risk in the state. This latest development reflects the ongoing efforts to stabilize the Florida property insurance market.
