ST. PETERSBURG -- One more insurance company has pulled out of the Florida property insurance market.
Bankers Insurance Group, based in St. Petersburg, says it made the difficult decision "to allow us to focus on our remaining lines and ensure they remain competitive and profitable. As an AM Best-rated carrier, we remain financially sound." Bankers told its agents that changes in state law passed during this year's special session weren't enough to solve the problems with Florida's homeowners insurance (from its statement to agents):
As we have communicated in recent weeks, unprecedented reinsurance costs over the last several years are forcing many carriers, including Bankers, to seek viable options to continue offering a mix of product lines in a distressed marketplace. Recent legislative measures, unfortunately, failed to adequately address the immediate financial challenges faced by property and casualty insurers, including combating fraud and litigation which exponentially outpaces every other state. We have, therefore, made the difficult decision to inform the Office of Insurance Regulation that Bankers is exiting its Homeowners (HO3) and Dwelling Fire (DP3) lines in Florida. Bankers has been proud to serve these lines for decades and remains dedicated 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 we maintain a financial strength rating of at least B+ from AM Best, meeting the requirement for mortgage lenders Fannie Mae and Freddie Mac. We will send an updated communication and updated timeline of non-renewals which adhere to the 120-day notice requirement in the state
Meantime, News Channel 8 in Tampa reports that an insurance rating firm has delayed downgrades of several Florida homeowners insurance companies, set for this week. Companies with less than an "A" grade can't sell policies to homeowners with federally guaranteed mortgages.
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