While it was set up to be non-competitive with the private insurance market, Citizens’ rates are priced considerably below market. According to Tim Cerio, Citizens president, CEO and executive director, Citizens’ HO-3 policies are 44% cheaper than the nine competitors that hold 24% of the market.
Citizens Property Insurance Company, Florida’s state-backed insurer, is looking to increase personal property rates an average of 13.4% and commercial rates 11.7%. The proposed increases still require approval by the state’s insurance department.
During the past three years, Citizens has increased rates an average of 15%, while private market players in the state had a cumulative rate increase of 39% during that period.
How machine learning helps insurers increase profitability
The ‘sweet spot’ for insurers when using machine learning involves gaining a clearer picture of customer behaviors.
For many U.S insurers, particularly smaller and midsize ones, the standard approach to rate changes is to assess various rate scenarios and select the one that best supports business objectives while heeding regulatory requirements. This approach usually does not incorporate a sophisticated view of how a customer would react to the various scenarios.
Historically, the development of these customer behavior models takes a significant amount of effort to build and maintain. As such, insurance executives rely on anecdotal analysis.
Florida insurance regulator appoints two deputy commissioner
The deputies will be charged with overseeing the implementation of recently enacted insurance legislation.
Sheryl Parker has been appointed the first deputy commissioner of market regulations for the state of Florida, while Virginia Christy has been tapped to serve as deputy commissioner of property and casualty, the Florida Office of Insurance Regulation (OIR) reported.
The two new appointees will work to implement recently passed legislation that aims to strengthen Florida’s property insurance market and safeguard consumers from predatory insurance practices, according to OIR.
Let Skyscarper help your P&C insurance needs all across the US
We Ensure Your Vision for a Brighter Tomorrow
