November 21, 2014

« Return to Floridian of the Year
Newsmakers of the Year - Statewide

Citizens

The state-run insurer brought some problems on itself.

Florida went another hurricane season without a significant storm — but not so for Citizens Property Insurance, the subsidized state insurer of last resort. Citizens brought on its own rough weather: Luxury spending by employees and eliminating its internal watchdog team as it investigated misconduct, a sex scandal and golden parachutes. Citizens says it actually was improving integrity controls through a reorganization but, amid a media storm, Gov. Rick Scott asked for an outside investigation into the goings-on. Meanwhile, Citizens worked to shrink risk — a process perennially controversial with policyholders who are shifted to private-sector companies. Citizens wants to go down to 1.2 million policies this year from 1.5 million in 2012.

Another year of collecting premiums without having to pay them out to cover storm damage makes Citizens more robust. It has $6 billion in surplus and, including government and private reinsurance, can pay $14.7 billion in claims without having to go into hock and sock ratepayers to pay it back. Still, that’s far short of its 1-in-100 year storm risk of $21.6 billion.

Tags: Floridian of the Year, Around Florida, Insurance, Newsmakers of the Year, Statewide Newsmakers

Digital Access

DIRECT DIGITAL ACCESS
Add digital to your current subscription, purchase a single ditgital issue, or start a new subscription to Florida Trend.

TABLE OF CONTENTS
An overview of the features and articles in this month's issue of Florida Trend.

ACCESS THIS ISSUE »

Florida Business News

Florida Trend Video Pick

More people to hit the road this Thanksgiving
More people to hit the road this Thanksgiving

The good news for Thanksgiving travelers: the price of gas is at five-year lows. The bad news: a lot more people will be on the road. 

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

Did President Obama overstep his executive authority by enacting immigration reform?

  • Yes. He should have gone through Congress.
  • Unsure
  • No, other presidents have taken similar action, and something had to be done.

See Results

Ballot Box
Subscribe