Rates are continuing to fall at Citizens Property Insurance Corporation, reflecting a shrinking exposure base as policy counts decline and Florida’s property insurance market stabilises.
Regulators approved an average 8.8% rate reduction for homeowners multiperil policyholders this week, with wind-only customers seeing an average 5.5% cut, as the Florida Office of Insurance Regulation set new pricing levels that will take effect July 1 for new business and at renewal for existing policies.
The reductions follow recent market reforms aimed at curbing litigation and strengthening insurer solvency, helping drive Citizens’ policy count down sharply.
The insurer now holds about 336,000 policies, down 76% from its October 2023 peak of 1.41 million, significantly reducing the need for risk transfer through reinsurance.
As a result of this shrinking exposure base, Citizens recently revealed that it aims to secure private reinsurance coverage of approximately $2.98 billion for its 2026 risk transfer program.
According to the firm, coverage would be comprised of $1.53 billion of existing private risk transfer remaining from 2025, and $1.45 billion of new private risk transfer, with budgeted premiums of approximately $350 million.
Under this scenario, Citizens explained it would expose 26% of its surplus for a 1-in-100-year event.
Tim Cerio, Citizens’ President/CEO and Executive Director, commented, “The Florida property insurance market is again healthy and vibrant.
“Most Floridians now have many options as financially sound private insurers compete for their business. Citizens, as it always has, will be there for those policyholders unable to secure coverage in the private market.”
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