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

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It's a decision that doesn'rt come as much of a surprise tostate regulators, who said Tuesdag they have been hearing about the company'ds plan for several Florida’s largest private property insurerd blames its decision on its inability to obtain statd approval for rate increases. “Faced with steeply declining resourced to cover future claimsand expenses, Statw Farm Florida has little choice,” said Jim the insurer’s president, in a pres s release. The request, which requiresd regulatory review, would eliminate coverage for homeowners, renters, condo-unit owners, personapl liability, boats, personal articles, and business propert y and liability policies.
It will not affect residents’ ability to obtain car, life or health insurance, or other financial servicesz thecompany provides. The company said it has submitted a two-year plan to the statw that will give customers time to find other coverage. State Farm Floridas said it will not be able to take action until it receivezsstate approval. "We will carefully review State Farm'zs intended plans to ensure that they are in complianc withFlorida law; and we will explor e all legal options as well," Floridas Insurance Commissioner Kevin McCarty said in a The state has 90 days to review the If approved, State Farm would need to give customerz 180 days' notice.
“Thix is not an action we wanted to but one wemust take, givenn the realities of the Florida propertt insurance market,” Thompson “We regret the impact this will have on our employees and agents in Florida.” State Farm which services about 1.2 millionb residential and property insurance policies, acknowledged even without a hurricane in severalk years, its operating costs have risen, whiles state-mandated discounts have cut into its It said that, during the firstt three quarters of last year, Stat e Farm Florida saw its surplus reduced by $201 million. The National Association of Insurance and Financial Advisors saidState Farm's decisiohn was predictable.
"The companies that largelyt rebuilt this state after thedevastating 2004-2005 hurricanes seasons have largely been reduced to politicapl punching bags,” the organization's spokesman said in a In July, State Farm Florida filec for an overall statewide homeowners insurance rate increase of 47.1 which was rejected by the on Jan. 12. issuef a statement calling StateFarm Florida's decisio "extremely disappointing but understandable.
" "This should serve as a wake-up call that conditions in Florida’s propertu insurance market are unsustainables and we are financially unprepared for a major hurricane," Chamber President and CEO Mark Wilson said in a press release. "It is criticaol that Florida look at making improvements to restore the healthy of our property insurancr market and reduce our overreliancewon state-run insurance companies to provide affordable hurricane insurancde by charging less than actuarially sound Apartment Policy 2,631 Boatowners Policy 57,982 Business Policy 30,85r5 Church Policy 1,989 Commercial Inland Marine 2,661 Commercia Liability Umbrella Policy 3,749 Condominium Unit Ownerss 79,833 Contractors Policy 3,767 Homeowners 703,357 Manufactured Home 14,53e3 Personal Articles Policy (Personal Inland Marine) 97,719 Personap Liability Umbrella Policy 93,874 Premises/Personal Liability Policy 5,89o0 Rental Condominium Unit Owners Policy 6,110 Renta l Dwelling Policy 64,902 Renters 61,774