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Press Release

Office Issues Citizens Rate Filing Order
Friday, September 16, 2016
Contact Info:

Amy Bogner/Karen Kees
(850) 413-2515
Press@floir.com          

TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) has established the 2017 personal property insurance rates for Citizens Property Insurance Corporation (Citizens). The overall estimated statewide average rate changes are shown in the chart below and include no rate increases for sinkhole coverage. The Order sets the rates for Citizens Multi-Peril and Coastal Homeowners, Dwelling Fire, Mobile Homeowners and Mobile Homeowners Dwelling Fire lines of business.
On August 18, 2016, the Office held a rate hearing to receive public comment on Citizens’ proposed rate changes. At the hearing, Citizens provided information about various components within its rate filing and identified water loss trends as a key contributing factor for the increasing rate need statewide. Educational awareness efforts directed at policyholders and policy language changes approved by the Office are proactive measures by Citizens to help curb this trend going forward. Citizens also answered questions about pre-event funding (a short-term loan to recover claim costs payable by the Florida Hurricane Catastrophe Fund) and its hurricane loss estimates, which are projections by the Florida Public Hurricane Model and three other models (AIR, RMS, EQE). These are used as the basis for how Citizens derives its recommended rates.
 
In the Order and at the request of multiple interested parties, the Office has agreed to request a review by the Florida Commission on Hurricane Loss Projection Methodology regarding the divergence of modeling results in Monroe County and its effect on rates. This review is in addition to a separate initiative underway to evaluate building code standards in Monroe County and their effect on rates. The Office will require an additional rate filing by Citizens for its policyholders in Monroe County if the results of either or both of these efforts support such a filing.
 
The effective date for both new and renewal rates within the Personal Lines Account (PLA) and Coastal Account (CA) is February 1, 2017. The chart below provides the overall estimated statewide average rate changes established by the Office for each line of business  individually:
 
(Incl. FHCF Cash Buildup Factor Changes)
Account
Original Rate Requested
Estimated Rate Established*
Homeowners Multi-Peril  (PLA)
#16-16024
6.9% increase
6.4% increase
Homeowners Wind Only (CA)
#16-16025
8.2% increase
8.2% increase
Property/Personal (Dwelling Fire) (PLA)
#16-16575
5.3% increase
5.3% increase
Property/Personal (Dwelling Fire) Wind Only (CA)
#16-16576
9.3% increase
9.3% increase
Mobile Homeowners Multi-Peril (PLA)
#16-16785
5.7% increase
5.7% increase
Mobile Homeowners Wind Only (CA)
#16-16788
10.3% increase
10.3% increase
Mobile Homeowners (Dwelling Fire) Wind Only (CA)
#16-16866
10.5% increase
10.5% increase
Mobile Homeowners (Dwelling Fire) (PLA)
#16-16867
3.2% increase
3.2% increase
* This is an estimate of the rate effect on earned premiums determined using selected changes from the in-force policy distributions and the rates in the Order.
 
Rate filing decisions for the commercial residential and commercial non-residential accounts are still pending.
 
Rate filings can be accessed via the “I-File Forms & Rate Filing Search” system using the following search criteria in either the “Quick Search” or “Advanced Search” options: file log numbers or by entering “Citizens Property Insurance Corporation” as the “company name”. When the selection appears, scroll to the bottom of the results page for the most recent filing information. 
 
Visit the Citizens Public Rate Hearing webpage on the Office’s website for additional information.
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Contact Info:

Amy Bogner/Karen Kees
(850) 413-2515
Press@floir.com          

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit
www.floir.com or follow us on Twitter @FLOIR_comm and Facebook

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