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11,000 Policies Disappear in the wake of Homeowners Insurance Company Depopulation

11,000 Policies Disappear in the wake of Homeowners Insurance Company Depopulation

Thursday’s Post  12.22.11 -  A Louisiana Property Insurer which formerly owned 11,000 Homeowners & Renters insurance policies that were transferred to the private insurance market. The Insurance Commissioner of Louisiana, announced that 11,000 homeowner policies have been shifted to the private insurance market during the recently completed depopulation from the Louisiana Citizens Property Insurance Corp. (better known as Citizens Insurance) Citizens Insurance has only 105,000 policies remaining. In light of the recent  Homeowners Insurance depopulation, Citizens’ market share has dropped to 6th in terms of market share.  There was not mention of Car Insurance.  Citizen’s Insurance Company does not market Auto Insurance Policies.

Louisiana Citizens Property Insurance Corporation is a nonprofit organization that provides insurance coverage for both residential and commercial properties for applicants who are allowed but unable to obtain insurance through voluntary insurance marketplace. In 2005, Citizens population grew significantly after the impact made by Hurricanes Katrina and Rita. Its policy count peaked in September of 2008, when it reached 174,000. The following year, in 2009, Citizens homeowners’ market share plummeted to nearly 7% of the market. This was the lowest since Hurricane Katrina in earlier in the decade. The depopulation process intends to help all property owners by diminishing assessments charged to all property insurance consumers.  During this round of depopulation, five companies have taken over responsibility of the policies. These include Occidental, Lighthouse, Capitol Preferred, Access Home, and Centauri Specialty.  In total, 32,000 policies were requested by the five companies and 11,000 policies were approved by Citizens to transfer. Citizens teamed-up with independent agents, as well as agents at Allstate, State Farm and Louisiana Farm Bureau to facilitate the flawless and hassle-free transfer of policies.  In the earlier rounds of the policy transfer of Citizens, the following reductions took place. So far, private insurers have already taken out nearly 70,000 policies  from Citizens Insurance Company.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602