The Farmers Group and AIG made the announcement, and according to the insurance experts, it’s an indication that Florida’s insurance market is still very much in crisis.
The latest include insurance giants AIG, deciding it will no longer insure houses along Florida’s coastline, and the Farmers Group deciding not to write any new policies at all.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.
Insurance Information Institute Spokesman, Mark Friedlander, said new data reveals replacement costs for insurance companies have increased by more than 55%. But the bigger issue for Floridians is the rapid growth of Citizens, the state-backed insurer of last resort.Estimating it will have 1.7 million customers by the end of 2023.