Monday's expected launch of Citizens Property Insurance Corp.'s Property Insurance Clearinghouse in Florida will "moderately increase" private- and capital-market reinsurance demand and should "modestly help" lower the last-resort insurer's policy count, according to Fitch Ratings.
According to a Citizens statement, "On Monday, four private companies will begin offering policies to new applicants for homeowners coverage as part of Citizens' measured rollout of the clearinghouse system authorized by state lawmakers in 2013. Over the next five months, additional participating private-market insurers will be added to the list of approved-Florida companies able to offer property insurance to Citizens applicants."
Florida Gov. Rick Scott signed SB 1770 into law in May 2013, which established the clearinghouse designed to reduce the number of policies at the state's last-resort insurer. Through the clearinghouse, new and renewed policies will be shopped to private insurers before being placed with Citizens.
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