Bankers Insurance Group Leaving Florida

Florida’s already crippled home insurance market is taking another hit. WESH 2 News has learned that another company, Bankers Insurance Group, is exiting the home insurance market in Florida. “The Florida private insurance market is devastated,” said Mark Friedlander. Friedlander is the Florida spokesperson for the Insurance Information Institute. He said Bankers Insurance is the 13th home insurance company in Florida to make such a change this year. The institute’s list includes home insurers that have either announced they will exit the Florida market, have stopped writing new business or have filed for bankruptcy. Friedlander said Bankers’ departure leaves people in the state with more than 50 other possible options. “It’s a very volatile market right now,” he said. In a statement, Bankers said: “This difficult decision has been made to allow us to focus on our remaining lines and ensure they remain competitive and profitable. As an AM Best-rated carrier, we remain financially sound.” The company continued to explain that state lawmakers didn’t do enough to fight fraud and lawsuits during the home insurance special session. Friedlander said there are about 25,000 policyholders who will be affected by the bankers’ decision. He said the company is expected to begin notifying policyholders in October because the Florida Office of Insurance Regulation must first approve the bankers’ exit plan. Under state law, Friedlander said the notices would give policyholders 120 days to make changes. “None of the policies are affected in 2022,” he said. “They’re not going to repeal any policies in the midterms, that’s not their plan.” Friedlander said early adopters will see the impact on their policies next year. But people should start preparing now, he says. “Start talking to your insurance agent as soon as possible to buy your coverage and see what other options are out there. Don’t wait until you get that notice,” he said. WESH 2 News reached out to Bankers for more details for customers and is waiting to hear back. , will continue to offer flood and commercial insurance. WESH 2 News also reached out to the Florida Office of Insurance Regulation to request an overview of the latest home insurers to leave the state of Florida, how many remain and how they are rated and is awaiting a response. More from Bankers Insurance Group: “As we have communicated in recent weeks, unprecedented reinsurance costs over the past several years are forcing many carriers, including bankers, to seek viable options to continue to offer a mix of product lines in a troubled market. Current legislative measures, unfortunately, do not adequately address the immediate financial challenges faced by property and casualty insurers. have failed to address it , which includes combating fraud and litigation that quickly outpaces other states. Therefore, we have made the difficult decision to notify the Office of Insurance Regulation that Bankers is exiting its Homeowners (HO3) and Washing Fire (DP3) lines in Florida. Bankers has been proud to serve these lines for decades and is dedicated to its agents and its policyholders. Bankers are financially competent and committed to all commercial lines of the state, Builders Risk, HO4, and Flood. We would like to remind you that we maintain a financial strength rating of at least B+ from AM Best, meeting the requirements of mortgage lenders Fannie Mae and Freddie Mac. We will send updated communications and an updated timeline of non-renewals to the state that comply with the 120-day notice requirement. Your loyalty to bankers over the last 46 years is paramount to us and we feel compelled to communicate directly with you. This decision was difficult, however, necessary to allow us to grow responsibly and maintain our long-term financial objectives. “Related: How Florida insurance companies are leaving buyers out to dry. Insurance experts say shady contractors are playing up legal loopholes in Florida

Florida’s already crippled home insurance market is taking another hit.

WESH 2 News has learned that another company, Bankers Insurance Group, is exiting the home insurance market in Florida.

“The Florida private insurance market is devastated,” said Mark Friedlander.

Friedlander is the Florida spokesperson for the Insurance Information Institute. Bankers Insurance has now reached the 13th position, he saidth Home insurers in Florida made such a change this year. The institute’s list includes home insurers that have either announced they will exit the Florida market, have stopped writing new business or have filed for bankruptcy. Friedlander said Bankers’ departure leaves people in the state with more than 50 other possible options.

“It’s a very volatile market right now,” he said.

In a statement, Bankers said: “This difficult decision has been made to allow us to focus on our remaining lines and ensure they remain competitive and profitable. As an AM Best Rated carrier, we are financially viable.”

The company continued to explain that state lawmakers didn’t do enough to fight fraud and lawsuits during the home insurance special session.

Friedlander said there are about 25,000 policyholders who will be affected by the bankers’ decision. He said the company is expected to begin notifying policyholders in October because the Florida Office of Insurance Regulation must first approve the bankers’ exit plan. Under state law, Friedlander said the notices would give policyholders 120 days to make changes.

“None of the policies are affected in 2022,” he said. “They’re not going to repeal any policies midterm, that’s not their plan.”

Friedlander said early adopters will see an impact on their policies next year. But people should start preparing now, he says.

“Start talking to your insurance agent as soon as possible to buy your coverage and see what other options there are. Don’t wait until you get that notice,” he said.

WESH 2 News reached out to the bankers for more details for the customers and is waiting to hear back. Bankers will continue to offer renters, flood and commercial insurance.

WESH 2 News also reached out to the Florida Office of Insurance Regulation to request an overview of the latest home insurers to leave the state of Florida, how many remain and how they have been rated and is awaiting a response.

More from Bankers Insurance Group:

“As we have communicated in recent weeks, unprecedented reinsurance costs over the past several years are forcing many carriers, including bankers, to seek viable options to continue offering a mix of product lines in a troubled market. Current legislative measures, unfortunately, do not adequately address the immediate financial challenges faced by property and casualty insurers. have failed to address, including combating fraud and litigation that quickly outpaces other states. Therefore, we have made the difficult decision to notify the Office of Insurance Regulation that bankers in Florida from its homeowners (HO3) and dwelling fire (DP3) lines. Bankers have been proud to serve these lines for decades and are dedicated to their agents and its policyholders.

Bankers are financially sound and committed to all commercial lines of the state, builders risk, HO4, and flood. We would like to remind you that we maintain a financial strength rating of at least B+ from AM Best, meeting the requirements of mortgage lenders Fannie Mae and Freddie Mac. We will send updated communications and an updated timeline of non-renewals to the state that comply with the 120-day notice requirement.

Your loyalty to bankers for the past 46 years is paramount to us and we feel compelled to communicate directly with you. This decision was difficult, however, necessary to allow us to grow responsibly and maintain our long-term financial objectives. “

Related: How Florida Insurance Companies Are Leaving Buyers Out to Dry

Related: Florida Property Insurance Company Goes Under, Leaving Policyholders Scrambling

RELATED: Insurance experts say shady contractors are playing up legal loopholes in Florida

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