“As we get additional away and hopefully go unscathed by this hurricane season, extra of these firms will return to the market, I’m sure, because it occurred 15 years in the past after Katrina and Rita,” the commissioner stated.
Donelon additionally famous that because the cancelations of the three insurers, the variety of insurance policies with the state insurer of final resort, Louisiana Citizens, jumped from 35,000 to 82,000. The commissioner is anticipating that quantity to climb even additional to 95,000.
WVUE-TV reported that Southern Fidelity joins two different insurance coverage firms – Lighthouse Excalibur and Maison – which have additionally just lately dropped owners’ insurance coverage insurance policies in Louisiana. Together, the three have canceled a complete of almost 100,000 insurance policies since June.
As reported by The Associated Press, Southern Fidelity clients have till September 13 to discover a new insurance coverage coverage. Meanwhile, Lighthouse Excalibur and Maison’s former purchasers have till August 28 to safe protection.
The state of Southern Fidelity is such that rankings agency Demotech withdrew its Financial Stability Rating for the corporate, noting that Southern Fidelity didn’t safe reinsurance protection in time for the upcoming hurricane season. And Louisiana will not be the one state the place Southern Fidelity is taking successful.
Read extra: Another Florida insurer teeters on the point of insolvency
The financially strapped firm was beforehand ordered by the Florida Office of Insurance Regulation (OIR) to switch some or all its insurance policies to a different insurer as a part of a “winding-down” plan.