Paul Sanchez
Bankers Insurance Group, a longtime Florida homeowners insurer, has decided to exit the state, citing unprecedented reinsurance costs and the state lawmakers' failure to address the challenges faced by the market. This decision has left many policyholders in Florida scrambling for alternative options and has raised concerns about the stability of the insurance market in the state. With Bankers Insurance being the 13th home insurer to make such a move, the situation has highlighted the difficulties faced by insurance companies in Florida and the impact on their customers.
| Characteristics | Values |
|---|---|
| Reason for leaving | State lawmakers did not do enough during the home insurance special session to combat fraud and litigation |
| No. of policyholders impacted | 25,000 |
| Year of exit | 2022 |
| Month of exit | October |
| Lines Bankers will continue offering | Renters, flood and commercial insurance |
| Rating | B+ from AM Best |
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What You'll Learn
- Bankers Insurance Group is the 13th home insurer to leave Florida
- The company cites legislative measures as a reason for leaving
- Bankers will continue offering renters, flood and commercial insurance
- Policyholders will be notified of the cancellation within a 4-month window
- Bankers is rated by AM Best rating service as financially sound
Bankers Insurance Group is the 13th home insurer to leave Florida
Bankers Insurance Group is leaving Florida, becoming the 13th home insurer to exit the state in 2022. The company has cited "unprecedented" reinsurance costs as the reason for its departure, with costs forcing many carriers to seek alternative options to continue offering products in a distressed marketplace.
Bankers Insurance Group has been serving the state for decades and remains dedicated to its agents and policyholders. The company has a financial strength rating of at least B+ from AM Best and is committed to ensuring its remaining lines remain competitive and profitable.
The decision to leave Florida was not taken lightly, with the company stating it was a difficult but necessary choice to allow for responsible growth and the maintenance of long-term financial objectives. Bankers Insurance Group also cited legislative measures that failed to address the challenges faced by the market, including fraud and litigation.
The impact of this decision will be felt by around 25,000 policyholders, who will be given 120 days to make alternative arrangements. The company will start notifying customers in October, once the Florida Office of Insurance Regulation has approved its exit plan. Despite this, Bankers will continue to offer renters, flood, and commercial insurance, as well as builders risk, HO4, and other lines.
The departure of Bankers Insurance Group highlights the volatility of the insurance marketplace in Florida, with a number of carriers exiting or becoming insolvent. This has left many homeowners scrambling to find alternative insurance providers, with some struggling to find affordable options.
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The company cites legislative measures as a reason for leaving
Bankers Insurance Group, a longtime Florida homeowners insurer, has announced that it will be leaving the state of Florida, specifically exiting its Homeowners (HO3) and Dwelling Fire (DP3) lines in the state. The company has cited legislative measures as a key reason for its decision to exit the Florida market.
In a statement, Bankers Insurance Group expressed that recent legislative measures have "failed to adequately address" the immediate financial challenges faced by property and casualty insurers. Specifically, the company mentioned that state lawmakers did not take sufficient action during the home insurance special session to combat fraud and litigation, which are significant issues in the Florida market. Bankers Insurance Group is not alone in its decision, as it joins an exodus of carriers leaving the Florida property market. This includes other home insurers that have either exited the state, placed a moratorium on writing new business, or gone insolvent.
The company's decision to leave Florida is expected to impact around 25,000 policyholders. Bankers Insurance Group has assured its customers that no policies will be impacted in 2022 and that they will be provided with a 120-day notice before any changes take effect. The company remains financially sound and committed to its remaining lines, including commercial lines, builders risk, flood, renters insurance.
The Florida Office of Insurance Regulation (FLOIR) plays a crucial role in regulating the insurance market in the state. Bankers Insurance Group has filed with FLOIR to exit the homeowners' insurance line in Florida, citing "unprecedented" reinsurance costs as a major factor. Reinsurers' excessive price hikes have been a significant challenge for insurance carriers in Florida, with some carriers blaming unfair and unexpected price increases for their decision to stop accepting new business in the state.
The impact of Bankers Insurance Group's departure from Florida extends beyond the company and its policyholders. With one less insurer in the market, there are concerns about the potential impact on competition and consumer choices in the state's insurance industry. However, despite the challenges, there are still over 50 other options available for consumers in the state, according to Friedlander, the Florida spokesperson for the Insurance Information Institute.
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Bankers will continue offering renters, flood and commercial insurance
Bankers Insurance Group is exiting the Florida property market, becoming the 13th home insurer to do so. The company has cited "unprecedented" reinsurance costs and a volatile marketplace as the reasons for its decision. Bankers also stated that state lawmakers did not do enough to combat fraud and litigation during the home insurance special session.
Despite this exit, Bankers will continue to offer certain types of insurance to its customers in Florida. Specifically, Bankers will remain in the market for renters, flood, and commercial insurance. This decision to maintain these lines of insurance demonstrates the company's commitment to its agents and policyholders in the state.
Renters insurance is a crucial offering from Bankers, providing coverage for tenants and their personal property. This type of insurance is especially important in Florida, where renters' rights and protections may vary. By continuing to offer renters insurance, Bankers fills a vital role in the state's insurance market.
Flood insurance is another essential product that Bankers will continue to provide. Given Florida's vulnerability to hurricanes and flooding events, having adequate flood insurance can offer peace of mind to homeowners and help them recover from potential disasters. Bankers' decision to maintain this line reflects its understanding of the unique challenges faced by Floridians.
Additionally, Bankers will persist in offering commercial insurance, catering to the needs of businesses in Florida. Commercial insurance can encompass various specialized coverage types, including property, liability, and business interruption insurance. By retaining this line, Bankers demonstrates its support for the state's business community and contributes to the resilience of Florida's economy.
While Bankers Insurance Group is exiting the Florida property market, it remains dedicated to serving its customers through these specific insurance offerings. The company's continued presence in these areas ensures that Floridians have access to essential protections, even amidst a challenging insurance landscape.
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Policyholders will be notified of the cancellation within a 4-month window
Bankers Insurance Group, a longtime Florida homeowners insurer, has decided to exit the state's homeowners insurance market. The company has cited "unprecedented" reinsurance costs and the state's failure to address challenges faced by the market as reasons for its decision. This will impact about 25,000 policyholders, who will be notified of the cancellation within a 4-month window as required by state law.
Policyholders will be given ample notice before the cancellation takes effect. Bankers Insurance is expected to start notifying policyholders in October, as the Florida Office of Insurance Regulation must first approve their exit plan. The company has stated that no policies will be impacted in 2022, and they do not plan to cancel any policies mid-term.
The decision by Bankers Insurance to leave Florida is not an isolated case. Several other insurance carriers have also exited or plan to exit the state's property market, citing similar challenges. Friedlander, the Florida spokesperson for the Insurance Information Institute, stated that Bankers Insurance is now the 13th home insurer in Florida to make such a change this year.
The company has assured its policyholders that it remains financially sound and committed to its remaining lines of business, including commercial, builders risk, flood, and renters insurance. They have also expressed their dedication to their agents and policyholders, acknowledging the difficulty of the decision.
It is important for impacted individuals to start preparing for this change as soon as possible. Policyholders are advised to speak to their insurance agents to review their coverage options and explore alternative insurance providers in the state. With over 50 other options available in Florida, policyholders can take the time to find the right provider that meets their needs and ensures they remain protected.
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Bankers is rated by AM Best rating service as financially sound
Bankers Insurance Group is leaving the Florida property market, becoming the 13th home insurer in Florida to do so. The company cited the failure of recent legislative measures to address the challenges faced by the market, including high reinsurance costs, fraud, and litigation. Despite this decision, Bankers remains financially sound and committed to its commercial lines, builders risk, flood, and other insurance offerings outside of homeowners and dwelling fire lines.
Bankers Insurance has received ratings from multiple entities, including AM Best, the Better Business Bureau (BBB), and Demotech. AM Best, a global credit rating agency, has assigned Bankers a financial strength rating of at least B+, indicating its assessment of the company's financial stability and ability to meet its ongoing insurance policy and contract obligations. This rating meets the requirements of mortgage lenders Fannie Mae and Freddie Mac. However, it is worth noting that AM Best's rating for Bankers is lower than many other modern insurance companies.
The Better Business Bureau (BBB) has also rated Bankers, giving it an excellent rating but not providing accreditation. Demotech, another rating agency, assigned Bankers an "A Exceptional" stability rating as of late March 2022. This rating reflects Demotech's assessment of the company's financial stability and ability to withstand financial stress.
While Bankers Insurance is exiting the Florida homeowners and dwelling fire insurance market, it maintains a strong financial position as indicated by its ratings from AM Best, BBB, and Demotech. These ratings provide valuable insights into the company's financial health and ability to fulfill its commitments to policyholders. It's important to note that ratings are subject to change over time, and the impact of Bankers' exit from the Florida market on its future ratings remains to be seen.
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Frequently asked questions
Yes, Bankers Insurance Group is leaving Florida.
Bankers Insurance Group is exiting Florida's home insurance market because of the state lawmakers' failure to address the challenges faced by the market. Bankers Insurance Group also cites "unprecedented" reinsurance costs as a reason for their exit.
Bankers Insurance Group announced that they were leaving Florida on July 25, 2022.
Approximately 25,000 policyholders will be impacted by Bankers Insurance's decision to exit Florida.
Bankers Insurance will continue to offer commercial, builders risk, flood, renters, and HO4 insurance in Florida.
