Can Slide Insurance fill the void left by Farmers in Florida?
In a strategic move, Slide Insurance, a full-stack homeowners insurtech, has acquired the renewal rights for 86,000 Florida homeowners insurance policies from Farmers Insurance.
This acquisition comes in the wake of Farmers’ decision to cease coverage in Florida, affecting an estimated 100,000 policyholders.
Notably, the transaction covers only homeowners’ policies, excluding renters, car, and umbrella policies.
To ensure a smooth transition, Farmers agents in Florida will have the opportunity to join Slide, and all renewals issued by Slide are set to commence from February 2024.
Bruce Lucas, the Founder and CEO of Slide, expressed confidence in Florida’s insurance market and highlighted the company’s ability to make informed decisions with advanced technology, a robust dataset, and financial stability.
The move aligns with Slide’s commitment to providing much-needed insurance capacity to Florida homeowners.
Slide’s acquisition of renewal rights for Farmers’ policies provides an alternative for affected policyholders and reinforces the evolving landscape of Florida’s insurance market.
Why is Farmers pulling out of Florida?
Farmers Insurance has become the fourth major insurer to exit Florida in the past year, following a trend that includes Centauri Insurance and Lexington Insurance, a subsidiary of AIG.
The decision impacts approximately 100,000 policyholders, as Farmers will no longer offer car, home, and umbrella policies in the state.
The withdrawal was communicated to the Florida Office of Insurance Regulation with a 90-day notice. The decision raised concerns among state regulators.
Florida Insurance Commissioner Michael Yaworsky expressed disappointment over the lack of prior consultation.
The move is attributed to Farmers’ rigorous analysis to manage risks in Florida. The insurance agency also exited the market with several products in California.
How is Progressive navigating Florida’s home insurance market?
In a continuation of disruptions in Florida’s property insurance market, Progressive announces a ‘rebalancing’ strategy, non-renewing about 100,000 home policies.
The company cites the need to ensure long-term stability and competitiveness, aligning with legislative reforms in Florida.
Progressive’s actions include discontinuing dwelling/fire or DP3 coverage and nonrenewing certain ‘high-risk’ property policies.
Even though Progressive’s move seems similar to decisions by Farmers’ and AAA in recent months, Progressive emphasizes its commitment to remain in Florida and continue insuring over 200,000 Floridians and their homes.
State officials are working towards attracting new carriers and stabilizing the market through legislative reforms.