Citizens insurance uses funds wisely to best serve its policyholders

Preparing for the 2020 hurricane season while Floridians battle COVID-19 requires that Citizens Property Insurance Corp. be running on all cylinders, especially in South Florida where more than half of our 455.000 policyholders live and work.

Last week, our Board of Governors, by a 7-1 vote, approved a management reorganization proposal to do more with less while further enhancing Citizens’ focus on customer service. The plan eliminated a senior leadership position and tapped other experienced Citizens leaders who took on more responsibilities and were compensated for their expanded roles. The reorganization saved the company and our policyholders more than $275,000.

Citizens, though a government-created entity, competes for management talent with private carriers across Florida. To attract and retain leaders, we try to provide compensation competitive with what private insurers offer candidates to fill those positions. As is appropriate for a nonprofit insurer, we do not offer bonuses or other incentives common in the private market but calculate salary levels solely on nationally accepted estimates of base compensation levels.

We are well-aware of the challenges all Floridians face from COVID-19 and have been an industry leader in taking steps to help our customers through these financially difficult times. We have temporarily relaxed underwriting rules, suspended cancellations, allowed renewals without immediate payment and made accommodations for new and existing customers wary of allowing inspectors into their homes.

At the same time, we felt it critical to reorganize our leadership team following the unexpected departure of a key member who oversaw services to customers across the state. Reorganizing a management structure weeks before hurricane season in the middle of a pandemic was an unfortunate but necessary task.

Citizens operates with the lowest expense ratio among Florida insurance companies while providing excellent service to those who depend on us following a loss, including 79,000 Hurricane Irma claimants in Miami-Dade and the Keys and 3,500 Hurricane Michael policyholders in the Panhandle.

The bottom line is Citizens’ top priority is to provide the quality service and products our policyholders deserve, and Florida statutes require. A solid, stable leadership team is essential to accomplish these goals.

This story was originally published May 19, 2020 at 3:28 PM with the headline "Citizens insurance uses funds wisely to best serve its policyholders."