TALLAHASSEE, FLORIDA — Another major insurance company is backing out of the Sunshine State. Farmers Insurance will no longer offer its insurance products to Florida customers, the company announced on Tuesday.
“This business decision was necessary to effectively manage risk exposure,” Farmers spokesman Trevor Chapman said in a statement. “Affected customers will receive notifications detailing when their coverage will end and will be advised of options for replacement coverage.”
The decision will impact an estimated 30 percent of current Farmers customers in Florida – resulting in the loss of 100,000 home, auto and umbrella insurance policies.
Insurance companies owned by Farmers – such as Bristol West, Foremost Signature, Farmers GroupSelect and Foremost Choice – will remain in the Florida market. Those companies account for about 70 percent of Farmers Insurance customers in the state.
Farmers becomes the fourth insurance company to pull its business out of Florida in 18 months. During that time period, seven Florida-domiciled insurance companies have been declared insolvent and 15 property underwriters have put a moratorium on new business, according to Insurance Business.
FLORIDA CFO RESPONDS
Florida Chief Financial Officer Jimmy Patronis ripped the insurance company in a lengthy statement on Tuesday.
“The more we learn about Farmers Insurance the more it’s clear its leadership doesn’t know what they’re doing,” Patronis said. “While they’re bad at helping people, they’re good at virtue signaling. Instead of focusing on their policyholders and running a functioning business, the insurer became the, ‘First U.S.-based Insurer to Become Signatory of the United Nations Principles for Sustainable Insurance.’”
Patronis cited a November 2022 statement from former Farmers Insurance CEO Jeff Dailey endorsing Left-wing Environmental, Social and Governance (ESG) policies.
“I sincerely believe that with today’s actions, Farmers Insurance is well on its way to becoming the Bud Light of insurance.”
Patronis also said he has directed his team to “conduct a deeper dive” into Farmers Insurance complaints and suggested the company will face further scrutiny down the road.
“My guess is they’re about to get hauled before the Legislature to answer for their actions when the next legislative session begins,” he said.
“The Legislature did impactful work to help stabilize the market, and Farmers Insurance actions are less a representation of the Florida market – and more of bad leadership at the insurer.”
