Florida Citizens news

Florida’s Citizens Property Insurance Corporation is asking the regulator to approve average rate increases of 14.2%, to cover off rising costs, including from reinsurance, and to bring its rates closer to the private market.

Citizens Property Insurance Corporation of Florida, the not-for-profit provider of property insurance to those unable to get private market coverage, is planning a significant spend to secure a further $4.2 billion of reinsurance and risk transfer in advance of this years hurricane season.

Florida’s Citizens Property Insurance Corporation has now finalised the pricing on its first industry loss trigger catastrophe bond and the Lightning Re Ltd. (Series 2023-1) issuance has secured the insurer $500 million of capital markets backed reinsurance at an 11% risk interest spread.

The board of Florida’s Citizens Property Insurance Corporation has approved the spend necessary to proceed with the issuance of its new $400 million to $500 million Lightning Re Ltd. (Series 2023-1) catastrophe bond, the insurers’ first industry-loss triggered deal.

Florida’s residual market insurer, Citizens Property Insurance Corporation, appears likely to return to the catastrophe bond market before the 2023 hurricane season begins, to access indemnity reinsurance protection, as well as its currently in the market and first ever industry-loss trigger cat bond Lightning Re.

Florida’s Citizens Property Insurance Corporation looks set to more than double the size of its new catastrophe bond issuance, as the target for its first industry loss trigger cat bond, the Lightning Re Ltd. (Series 2023-1) issuance, has now been lifted to between $400m and $500m, Artemis has learned.

Florida’s Citizens Property Insurance Corporation is back in the catastrophe bond market and for the first time the residual market insurer for the state is seeking reinsurance on an industry loss trigger basis, with a $200 million target for this Lightning Re Ltd. (Series 2023-1) issuance.

The recently enacted legislative reforms to Florida’s property insurance marketplace have the potential to alleviate some of the concerns of the insurance-linked securities (ILS) industry over prolonged trapping of capital, according to AM Best.

The property insurance related legislation currently being debated by lawmakers during Florida’s Special Session is seen as “historic” by the CEO of the state’s insurer of last resort, Citizens Property Insurance Corporation.

With another Special Session of the Florida legislative set for later this month, Governor of the state Ron DeSantis has been outspoken on two key issues, one being reinsurance capital supply, the other the insurer of last resort Florida Citizens.