Comparative Expense Study of Citizens Property Insurance Corporation


By Joseph L. Petrelli, Douglas A. Powell and Barry J. Koestler

Demotech, Inc. has completed an analysis of the relative historical expense levels reported by Citizens Property Insurance Corporation, 47 carriers dedicated to Florida’s property insurance marketplace as well as 77 private, single state insurers focused on the property insurance marketplace in states other than Florida.  It is our observation that the expense levels of Citizens compare favorably to other property writers focused in a single state due to its unique corporate structure, as approved by the Florida Financial Services Commission.

A review and comparison of the expense information reported for the period encompassing calendar years 2006 through 2010 inclusive was prepared.  Based on this review and comparison of the expense and premium information, Demotech concluded that Citizens’ expense ratio advantages, while favorable on an overall basis, are heavily influenced by factors that relate to the corporate structure bestowed by statute as opposed to competitive advantages associated with procedures and practices implemented within the organization.

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