Farmers Insurance reportedly set to leave Florida, prompting ire from officials
Amber Jo Cooper contributed to this report.
Editor’s note: This story was updated to include a response from the Florida Office of Insurance Regulation.
LAKE MARY, Fla. (FLV) – Florida officials are responding after Farmers Insurance reportedly plans to leave to Florida, highlighting “concerns of extreme weather and hurricanes as a major risk in the property insurance market.”
On Monday, the insurance company reportedly informed the state that they would be “pulling several home, auto, and umbrella policies out of Florida.”
“With catastrophe costs at historically high levels and reconstruction costs continuing to climb, we implemented a pause on writing new homeowners policies to more effectively manage our risk exposure,” the company said in a statement to the Tampa Bay Times.
Florida’s Office of Insurance Regulations told Florida’s Voice that they had received a market reduction notice from Farmers Insurance Group on Monday. It is currently “under review” to be in accordance with Florida statutes.
On July 11, Insurance Commissioner Michael Yaworsky sent a letter to Farmers Insurance expressing “disappointment.”
“We are disappointed by the hastiness in this decision and troubled by how this decision may have cascading impacts to policyholders,” Yaworsky said.
Yaworsky said Farmers has noted that this decision “only impacts about 26.6% of their Florida policyholders,” but the impacts “should not be taken lightly.”
NEW: Fla. Office of Insurance Regulation responds to Farmers Insurance's plans to pull several policies out of Florida
— Florida’s Voice (@FLVoiceNews) July 11, 2023
"We are disappointed by the hastiness in this decision and troubled by how this decision may have cascading impacts to policyholders."
"Farmers committed… pic.twitter.com/N5fP1WECdq
“Farmers committed to facilitating a seamless and efficient assumption of affected policyholders to other companies who may have interest in growing their presence in Florida […] I appreciate those commitments and will hold you to them,” the letter said.
The office explained that insurance companies have to give a 90 days notice to them in writing if the insurer desires to discontinue one or multiple lines of insurance in Florida.
When the 90 days lapse, they then must give the policyholders 120 days notice before the policies issued date of non-renewal is put into effect.
A potential decision by Farmers Insurance to end policies in the state was met with push back by the public and elected officials.
Chief Financial Officer Jimmy Patronis said that the insurance company had “zero communication” and that his office is going to explore every avenue possible to “hold them accountable.”
”[You] don’t get to leave after taking policyholder money,” he stated on social media.
Hearing rumors @WeAreFarmers might pull out of Florida. If that’s true my office is going to explore every avenue possible for holding them accountable. Don’t get to leave after taking policyholder money. Can’t write auto if you’re not doing homeowners either. Zero communication!
— Jimmy Patronis (@JimmyPatronis) July 10, 2023
Sen. Jason Pizzo, D-Hollywood, took to social media to comment on the news.
“While campaigning on woke, Florida’s leadership has been asleep,” Pizzo said.
While campaigning on woke, Florida’s leadership has been asleep.
— Sen. Jason Pizzo (@senpizzo) July 11, 2023
Farmers Insurance pulls out of the Florida market | Miami Herald https://t.co/mbAPzZj3Na
Florida has seen record insurance rates over the recent years.
The state legislature has attempted to combat the rising premiums and costs by implementing insurer-friendly policies that are meant to incentivize companies to stay and do business with Florida residents.
Florida also committed to providing increased disaster relief and financial protections that hoped to benefit both the insurance companies and policyholders.
