Breaking down the Citizens Insurance rate hike

Reporter: Chris Cifatte
Published: Updated:
Citizens Insurance rate hike

Citizens insurance is trying to justify the substantial rate increases it is asking for. The insurance company says their rates are less than the private market.

WINK News anchor Chris Cifatte has been monitoring a hearing that could really impact your next premium.

The rate increase has already been approved by Citizens’ board, so the next step is approval by the Office of Insurance Regulation.

On Thursday, a public hearing will be held to explain the numbers.

Citizens Insurance is supposed to be the insurer of last resort, meaning it is only used when you can’t get insurance elsewhere.

And you’re supposed to pay more for it since state taxpayers back it.

The company’s CEO says private market rates have increased 103% since 2019, while Citizens’ rates have increased 31%.

Last year, state law re-emphasized that Citizens’ rates should not be competitive; they should be higher.

“We certainly don’t take our request for a rate request lightly,” said Tom Cerio, Citizens president and CEO. “We know that Citizens’ customers are just like everyone in the private market. Nobody wants to face a rate increase.”

Citizens Insurance also says depopulation is working. That’s moving Citizens’ policies to private companies.

They hope to have fewer than one million policies by year’s end, down from 1.2 million now.

There won’t be any decision on Thursday, but WINK News could hear from Citizens’ customers shortly.

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