Insurers scan after State Farm

 

Friday, Mar 06,2009, 10:14:26 PM   Click:

Insurers scan after State Farm
State Farm's decision to withdraw from property insurance in Florida has created a bonanza for small insurers, industry observers said.

Although the company said a month ago, it will give its 1.2 million Florida owner policies, customers have quickly fled to other companies, the South Florida Sun-Sentinel reported Tuesday.

People's Trust has signed 1500 State Farm customers old and plans to absorb a total of 455,000, the newspaper said. Security First Insurance Co. said it signed 90,000 new policies in the coming years.

Although States are subject to disasters such as Florida scare some insurance companies, People's Trust founder Mike Gold told the Sun-Sentinel of the state is a good place to do business, because we disagree on mathematics.

State Farm said it lost $ 20 million per month, partly due to reductions in state mandates to provide for the owners that add protection against storms, their houses, said the newspaper. Last month, she presented two-year plan out of the state Office of Insurance Regulation for approval.

Florida Insurance Commissioner Kevin McCarty said he was optimistic that more than two years, the market can absorb all of State Farm customers, Ed Domansky office spokesman told the press.

Copyright © 2009 United Press International State Farm's decision to withdraw from property insurance in Florida has created a bonanza for small insurers, industry observers said.