Florida Citizens

Insurer adjusts programme to seek slightly more aggregate and less “sliver” reinsurance cover.

The Florida state insurer confirmed plans to add $200mn of personal lines reinsurance cover to its overall programme.

The changes in insurer appetite to participate in the Florida Hurricane Catastrophe Fund and new guidelines from ratings agency Demotech could create opportunities for the ILS market.

The fund begins reimbursing insurers after industry losses have reached around $7.3bn.

The insurer has called for the increase as a result of costs relating to the ongoing assignment of benefits crisis.

The losses will not trigger its FHCF or reinsurance protection.

Floir data shows that First Protective has the largest market share, at 9.4 percent, followed by USAA, with 7.6 percent.

The major state carrier absent from the group active in the panhandle is UPC Insurance.

The postponement will provide time for Citizens to assess policy changes that take aim at assignment-of-benefits abuses.

Coastal dwellers in Florida would be hardest hit by the increase, with rates on the seafront rising by an average of 9.5 percent.

Florida Citizens' latest issuance expands by a quarter during marketing.

Florida's state-backed insurer is set to buy $1.42bn reinsurance for the 2018 season.