Personal Lines Bulletin

Coming Soon for Personal Lines: The Clearinghouse Project

August 22, 2013 - ATB #012-13

As announced in ATB #011-13, effective January 27, 2014, Citizens will implement a consumer clearinghouse. The clearinghouse will be designed to help agents match all new multiperil HO-3 applicants with participating private-market insurers before placing coverage with Citizens. The clearinghouse was enacted by the Florida Legislature during the 2013 legislative session.

As the Florida insurance market continues to rebound and options for private-market coverage expand, Citizens is working diligently to help Florida homeowners find coverage in the private market.

The clearinghouse project will provide the following advantages:

  • Agents will be able to provide their customers with expanded access to coverage with private-market insurers.
  • Private-market insurers extending offers of coverage through the clearinghouse will either provide agents with full appointments or offer them a limited service agreement extended solely for the purpose of writing business through the clearinghouse.
  • Consumers will gain access to broader coverage options available in the private market, and, in some cases, will be able to compare multiple privatemarket offers that may cost less than comparable coverage from Citizens.
  • Consumers who find private-market coverage will not be subject to Citizens’ policyholder assessments that could be as high as 45 percent of their premiums, following a major hurricane.
  • All Floridians will benefit from Citizens’ significantly decreased exposure and corresponding assessment risk.
  • Participating private-market insurance companies willing to write coverage in Florida will have increased access to Florida insurance consumers.

We understand that a project of this magnitude will generate many questions and concerns and are committed to ensuring that our agents are kept well-informed as this project proceeds.


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