Bankers Insurance Group is leaving Florida

Bankers Insurance Group is leaving Florida

Florida’s already crippled home insurance market is taking another hit. WESH 2 News has learned another company, Bankers Insurance Group, is pulling out of Florida’s home insurance market. “The private insurance market in Florida is collapsing,” said Mark Friedlander. Friedlander is a spokesperson for the Insurance Information Institute of Florida. He said Bankers Insurance is now 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 exits from the Florida market, imposed a moratorium on new business or entered insolvency. Friedlander said Bankers’ departure leaves more than 50 other possible options for people in the state. “It’s a very volatile market right now,” he said. Bankers said in a statement: “This difficult decision has been taken so that we can focus on our remaining lines and ensure they remain competitive and profitable. As a top-rated AM carrier, we remain financially healthy.” The company went on to explain that state lawmakers did not do enough during the home insurance special session to combat fraud and lawsuits. 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, as Florida’s Office of Insurance Regulation must first approve the bankers’ exit plan. Under state law, Friedlander said the notices give policyholders 120 days to make the change. “No policies will be affected in 2022,” he said. “They’re not going to cancel any policy mid-term, that’s not their plan.” Friedlander said the first people will see the impact on their policies next year. But he adds that people should start preparing now. “Start talking to your insurance agent as soon as possible to shop around for your coverage and find out what other options are out there. There is no need to wait to receive this notification,” he said. WESH 2 News has reached out to the bankers for more details for customers and is awaiting a response. Bankers will continue to offer rent, flood and commercial insurance. WESH 2 News has also reached out to the Florida Office of Insurance Regulation for a breakdown 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’ve communicated in recent weeks, the unprecedented cost of reinsurance over the past several years is forcing many carriers, including Bankers, to seek viable options to continue offering a mix of product lines in a difficult market. Unfortunately, recent legislative action has failed to adequately address the immediate financial challenges facing property and casualty insurers, including combating fraud and litigation, which exponentially outpaces all other states. Therefore, we have made the difficult decision to notify the Office of Insurance Regulation that bankers are abandoning their Homeowners (HO3) and Dwelling Fire (DP3) lines in Florida. Bankers is proud to have served these lines for decades and remains committed to its agents and its policyholders. Bankers remains financially sound and committed to all commercial lines, builders risk, HO4 and flood in the state. We want to remind you that we maintain a financial strength rating of at least B+ from AM Best, which meets the requirement for mortgage lenders Fannie Mae and Freddie Mac. We will send you an updated communication and an updated non-renewal timeline to comply with the state’s 120-day notice requirement. Your loyalty to bankers over the past 46 years is paramount to us and we felt obligated to communicate with you directly. This decision was difficult, but it was necessary to allow us to grow responsibly and maintain our long-term financial goals.” Related Articles: How Florida’s Declining Insurance Companies Are Leaving Buyers Dry Related: Florida Property Insurance Company Falls and Policyholders Shuffle Related: Insurance Industry Experts they say shady contractors are playing legal loopholes in Florida

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

WESH 2 News has learned another company, Bankers Insurance Group, is pulling out of Florida’s home insurance market.

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

Friedlander is a spokesperson for the Insurance Information Institute of Florida. He said Bankers Insurance is now 13Th Florida home insurer to make such a change this year. The institute’s list includes home insurers that have either announced exits from the Florida market, imposed a moratorium on new business or entered insolvency. Friedlander said Bankers’ departure leaves more than 50 other possible options for people in the state.

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

Bankers said in a statement: “This difficult decision has been taken so that we can focus on our remaining lines and ensure they remain competitive and profitable. As the best-rated AM carrier, we remain financially healthy.”

The company went on 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, as Florida’s Office of Insurance Regulation must first approve the bankers’ exit plan. Under state law, Friedlander said the notices give policyholders 120 days to make the change.

“No policies will be affected in 2022,” he said. “They’re not going to cancel any policies mid-term, that’s not their plan.”

Friedlander said the first people will see an impact on their policies is next year. But he adds that people should start preparing now.

“Start talking to your insurance agent as soon as possible to shop around for your coverage and find out what other options are out there. There is no need to wait to receive this notification,” he said.

WESH 2 News has reached out to the bankers for more details for customers and is awaiting a response. Bankers will continue to offer rent, flood and commercial insurance.

WESH 2 News has also reached out to the Florida Office of Insurance Regulation for a breakdown 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’ve communicated in recent weeks, the unprecedented cost of reinsurance over the past few years is forcing many carriers, including bankers, to look for viable options to continue offering a mix of product lines in a difficult market. Unfortunately, recent legislative action has failed to adequately address the immediate financial challenges facing property and casualty insurers, including combating fraud and litigation, which exponentially outpaces all other states. Therefore, we have made the difficult decision to inform the Office of Insurance Regulation that bankers are abandoning their Home Owner (HO3) and Apartment Fire (DP3) lines in Florida. Bankers is proud to have served these lines for decades and remains committed to its agents and its policyholders.

Bankers remain financially sound and committed to all commercial lines, builders risk, HO4 and floods in the state. We want to remind you that we maintain a financial strength rating of at least B+ from AM Best, which meets the requirement for mortgage lenders Fannie Mae and Freddie Mac. We will send an updated communication and an updated non-renewal timeline that adheres to the state’s 120-day notice requirement.

Your loyalty to bankers over the past 46 years is paramount to us and we felt obligated to communicate with you directly. This decision was difficult, but necessary to allow us to grow responsibly and maintain our long-term financial goals.

Related: How Florida’s insurance companies are collapsing is leaving buyers in the lurch

Related: Florida property insurance company goes out of business and policyholders are scrambling

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

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