Florida's Insurance Market in Flux: New Players and Opportunities Amid State Farm's Departure

Strategic Insights -

The departure of State Farm from Florida's insurance market is creating a ripple effect, with new players entering the scene to fill the void. Security First Insurance Co. has launched a "replacement insurance coverage program" to provide up to 50,000 homeowners and condo policies to State Farm customers. This move would nearly double the size of Security First, which is led by former state senator Locke Burt.

Meanwhile, the state's largest private insurer, State Farm, is expected to shed about 1 million customers later this year. The impact of this departure is being felt across the industry, with other carriers expected to follow suit. As the Florida insurance market continues to evolve, new opportunities are emerging for consumers and new entrants alike.

Key Takeaways:

  • Security First Insurance Co. has launched a "replacement insurance coverage program" to provide up to 50,000 homeowners and condo policies to State Farm customers.
  • This move would nearly double the size of Security First, which is led by former state senator Locke Burt.
  • State Farm is expected to shed about 1 million customers later this year, creating a void that new players are seeking to fill.
  • Locke Burt, security First's president, predicts that State Farm customers who act now will see significant savings over their current premiums.
  • The Florida insurance market is expected to continue to evolve, with new opportunities emerging for consumers and new entrants alike.
  • Ocala National Bank was closed by the Office of the Comptroller of the Currency on January 30, 2009, marking the first bank failure of the year.
  • CenterState Bank of Florida acquired Ocala National Bank's deposits and assets for $3.4 million and $23.5 million, respectively.
  • Janice McCann has joined Olympus Insurance as regional manager for Southwest Florida, leading agency relations, production, and customer relations.
  • Shelley Freeman has been named regional president of community banking for Florida at Wells Fargo, leading retail, small business, and business banking efforts.

Statistics:

  • 50,000: The number of homeowners and condo policies provided by Security First Insurance Co.'s replacement insurance coverage program.
  • 1 million: The number of State Farm customers expected to be shed by the insurer later this year.
  • $223.5 million: The total assets of Ocala National Bank, which was acquired by CenterState Bank of Florida for deposits and assets.
  • $205.2 million: The total deposits held by Ocala National Bank, which were purchased by CenterState Bank of Florida for $3.4 million.
  • $23.5 million: The value of Ocala National Bank's assets purchased by CenterState Bank of Florida.
  • 2007: The year Olympus Insurance was founded to write homeowners insurance through over 2,000 agents.

Sources:

  • "Security First Insurance Co. already has launched a 'replacement insurance coverage program' to provide up to 50,000 homeowners and condo policies to State Farm customers."
  • "State Farm customers who act now will likely see a significant savings" over their current premiums, Burt said.
  • Ocala National Bank was closed by the Office of the Comptroller of the Currency on January 30, 2009.
  • CenterState Bank of Florida acquired Ocala National Bank's deposits and assets for $3.4 million and $23.5 million, respectively.
  • Janice McCann has joined Olympus Insurance as regional manager for Southwest Florida, leading agency relations, production, and customer relations.
  • Shelley Freeman has been named regional president of community banking for Florida at Wells Fargo, leading retail, small business, and business banking efforts.