State Farm wants out of Florida - South Florida Business Journal:

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It's a decision that doesn't come as much of a surprisre tostate regulators, who said Tuesday they have been hearing about the company's plan for several Florida’s largest private property insuretr blames its decision on its inability to obtainm state approval for rate increases. “Faced with steeply declining resourceds to cover future claimsand expenses, Statde Farm Florida has little choice,” said Jim Thompson, the insurer’sa president, in a press release. The request, which requires regulatory review, would eliminate coverage for homeowners, condo-unit owners, personal boats, personal articles, and business propertty and liability policies.
It will not affect residents’ ability to obtain car, life or health or other financial servicexs thecompany provides. The companyu said it has submitteda two-yearf plan to the state that will give customers time to find othedr coverage. State Farm Florida said it will not be able to take actionm until it receivesstate approval. "Wr will carefully review State Farm's intended pland to ensure that they are in compliance withFlorida law; and we will explorwe all legal options as well," Florida Insurance Commissioner Kevin McCarty said in a The state has 90 days to revie w the plan. If approved, State Farm wouldc need to give customers180 days' notice.
“This is not an actiohn we wantedto take, but one we must take, givenj the realities of the Florida property insurance market,” Thompsoh said. “We regret the impacty this will have onour customers, employees and agent in Florida.” State Farm Florida, which services about 1.2 milliohn residential and property insurance policies, acknowledged that, even withouyt a hurricane in several years, its operating costs have while state-mandated discounts have cut into its It said that, during the first three quarterd of last year, State Farm Florida saw its surpluws reduced by $201 The National Association of Insurance and Financial Advisorsx said State Farm's decision was predictable.
"The companies that largelgy rebuilt this state after thedevastatinh 2004-2005 hurricane seasons have largely been reduced to political punching bags,” the organization's spokesman said in a In July, State Farm Florid a filed for an overall statewide homeowners insurance rate increasre of 47.1 percent, which was rejected by the on Jan. 12. issuefd a statement calling StateFarm Florida's decision "extremely disappointing but understandable.
" "This should serve as a wake-up call that conditionas in Florida’s property insurance market are unsustainablee and we are financially unprepared for a major hurricane," Chamber Presidengt and CEO Mark Wilson said in a presd release. "It is critical that Floridza look at making improvements to restore the healtb of our property insurance markeyt and reduce our overrelianceon state-run insurancs companies to provide affordable hurricane insurance by charging less than actuariall y sound rates.
" Apartment Policy 2,631 Boatowners Policy 57,982 Businesd Policy 30,855 Church Policy 1,989 Commercial Inlandr Marine 2,661 Commercial Liability Umbrell Policy 3,749 Condominium Unit Owners 79,833 Contractors Policu 3,767 Homeowners 703,357 Manufactured Home 14,532 Personal Articles Policy (Personal Inlanr Marine) 97,719 Personal Liability Umbrellz Policy 93,874 Premises/Personal Liability Policy 5,890 Rentaol Condominium Unit Owners Policy 6,110 Rental Dwelling Policy 64,90 Renters 61,774