State Farm pulling out of Fla. homeowners market

Florida’s largest private homeowners insurer, State Farm Florida, is planning to stop selling property insurance in the state. State Farm spokesman Chris Neal says some 1.2 million customers with residential and other related property insurance policies would be affected, but said that none need to worry immediately. “It’s going to be a long process,” Neal says. “No one has to do anything today.” The Illinois-based insurer can’t do anything either before completing a regulatory review in 90 days, and is then prohibited by law from ending any policy before giving a six-month notice. Four State Farm executives, including CEO Ed Rust and State Farm Florida President Jim Thompson, met with Insurance Commissioner Kevin McCarty and other staff at the Office of Insurance Regulation for an hour today to inform them of their decision. McCarty called the State Farm decision disappointing but not surprising. “I will do everything within my power to protect Florida consumers from unnecessary destabilization of the insurance market,” McCarty says. “Florida already has new companies who are eagerly looking to grow their businesses and will welcome the opportunity to add more customers.” In its statement today, the insurer says it has been unable to obtain regulatory approval from Florida officials to charge adequate rates for its property insurance for homeowners, renters and others who own condominiums, boats and businesses.