Florida’s insurance regulator has taken further steps to expand market capacity, issuing a permit to a new property/casualty insurer while approving a new round of policy takeouts from Citizens Property Insurance Corp.
Sypher Insurance Exchange has received a permit from the Florida Office of Insurance Regulation (OIR), allowing it to move closer to entering the state’s insurance market. The company is still awaiting its final certificate of authority before it can begin underwriting business. Once fully approved, Sypher intends to write a range of property and casualty lines, including homeowners’, fire, allied lines, inland marine, boiler and machinery, and liability coverage.
The company has indicated that its business model will center on a technology-driven platform designed to integrate insurance, reinsurance, and operational processes within a single system. It said further details regarding its market entry will be disclosed once regulatory approval is complete.
Alongside the permit, the OIR has approved multiple insurers to assume policies from Citizens, Florida’s state-backed insurer of last resort. The move is part of ongoing efforts to reduce Citizens’ exposure by transferring policies to private carriers.
In the latest approvals, One Alliance North America Insurance Co. was authorized to assume up to 10,000 personal residential multiperil policies. Southern Oak Insurance Co. received approval to take on up to 40,000 multiperil policies and 10,000 wind-only policies. Manatee Insurance Exchange was cleared to assume up to 88,000 multiperil policies and 12,000 wind-only policies, while Slide Insurance Co. was approved to take over as many as 30,000 multiperil policies.
These transfers come as Citizens’ policy count has declined significantly. As of March 20, the insurer reported approximately 322,500 policies in force, down from more than 841,000 a year earlier.
Market participants have indicated that future takeout activity may be influenced by reinsurance pricing conditions, particularly as insurers assess their risk appetite and capital requirements ahead of peak hurricane season.
The developments highlight continued efforts by Florida regulators to stabilize the property insurance market by encouraging private-sector participation and reducing reliance on the state-backed insurer.
