More than 130,000 customers of state-backed Citizens Property Insurance could be picked up by private carriers after the start of the year.
The Florida Office of Insurance Regulation announced Thursday that five private insurers have been approved to acquire up to 127,266 personal-residential policies and 3,268 commercial-residential policies in January through a process known as “takeout.”
The actual number of polices eventually moving into the private market is expected to be much lower. The takeout process allows private companies to select the least-risky policies. Also, policyholders are allowed to reject takeout offers. Of the 1.3 million policies approved for takeout by the state this year, 172,351 had shifted into the private market as of Sept. 23.
Additional takeout offers are planned for later this month and in December. The companies approved for the January takeout are Anchor Property & Casualty, Heritage Property & Casualty, Safepoint Insurance, Southern Oak Insurance and Weston Insurance.
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The takeout process is one of the steps Citizens has used to shed nearly 1 million policies over the past three years. As of Sept. 30, the number of policies with Citizens stood at 574,087.
News Service of Florida