Tim Cerio, CEO of Citizens Property Insurance Corporation, informed the board on December 4, 2024, that legislative reforms have stabilized Florida’s property insurance market. Speaking in Tallahassee, he credited the changes with bringing the market back from the brink of collapse.
"The reforms passed by the legislature … really brought the insurance market back from the brink of collapse. They are continuing to work, which is great news for all Floridians," said Timothy Cerio, President, CEO and Executive Director. "I was not overstating things when I said the reforms championed by the governor and the CFO brought us back from the brink, We think we are going to end the year at only 369,000 new policies, which is 30 percent below what we forecast. So, because the market is getting healthier, we are seeing less new business come in, It's critical to just point out that we are the state-created, not-for-profit, insurer of last resort. We have no financial incentive to not pay claims. Zero,"
According to a report by Florida's Office of Insurance Regulation (FLOIR), legislative reforms have reduced abusive litigation practices that previously dominated the property insurance market. In 2022, Florida accounted for 14.9% of the nation's homeowners' claims but 70.8% of lawsuits, a disparity now being addressed.
Timothy Cerio, President, CEO and Executive Director of the Citizens Property Insurance Corporation
| flbog.edu
Clausen Miller states that Florida's Senate Bill 2-A, enacted in December 2022, eliminated the "one-way" attorney fee provision, which previously required insurers to cover policyholders' legal fees when disputes were settled in favor of the policyholder. This reform, along with restrictions on the Assignment of Benefits (AOB) process, aims to curb litigation abuse and stabilize the property insurance market.
The Insurance Information Institute reports that in 2023, the top 50 private insurers in Florida reported a cumulative underwriting loss of $190.8 million, an improvement from the $1.80 billion loss in 2022 and the $1.52 billion loss in 2021. Florida's defense and cost-containment expense (DCCE) ratio—a key measure of litigation impact—fell to 3.1 in 2023 from 8.4 in 2022, with direct incurred legal defense expenses dropping to $739 million from $1.6 billion the previous year.
According to Citizens Property Insurance Corporation, the Board of Governors meeting was convened to assess the current state of Florida's property insurance market, evaluate the impact of recent legislative reforms, and discuss strategies for reducing the number of policies held by Citizens by transferring them to private insurers. The meeting also addressed financial performance and handling claims from recent hurricanes, aiming to stabilize the state-backed insurer and minimize financial risks.
Timothy Cerio serves as President, CEO, and Executive Director of Citizens Property Insurance Corporation, overseeing all company operations and acting as liaison to the Board of Governors. With over 28 years of experience in both public and private sectors, he previously held roles such as General Counsel to Florida Governor Rick Scott and General Counsel and Chief Legal Officer at Citizens. Cerio earned a bachelor's degree in political science in 1990 and graduated with honors from the University of Florida College of Law in 1995.