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 abouyt the company's plan for several months. Florida’s largest private property insured blames its decision on its inabilityh to obtain state approvao forrate increases. “Faced with steeply declining resourcesz to cover future claims and State Farm Florida haslittlde choice,” said Jim Thompson, the insurer’s president, in a press The request, which require s regulatory review, would eliminate coverage for homeowners, condo-unit owners, personal liability, boats, personaol articles, and business property and liability policies.
It will not affecg residents’ ability to obtain car, life or healtn insurance, or other financial services thecompany provides. The company said it has submitteda two-yeafr plan to the state that will give customers time to find othe r coverage. State Farm Florida said it will not be able to take actioj until it receivesstate approval. "Ww will carefully review State Farm's intended plans to ensure that they are in compliancre withFlorida law; and we will explore all legapl options as well," Florida Insurancre Commissioner Kevin McCarty said in a statement. The state has 90 days to reviethe plan. If approved, State Farm would need to give customer s180 days' notice.
“This is not an actioh we wantedto take, but one we must given the realities of the Florida propertg insurance market,” Thompson said. “We regret the impacty this will have onour customers, employees and agents in State Farm Florida, which services about 1.2 million residential and property insurance policies, acknowledged that, even without a hurricane in severak years, its operating costs have while state-mandated discounts have cut into its revenue. It said during the first three quarters of last State Farm Florida saw its surplus reducedby $201 million. The Nationa l Association of Insurance and Financial Advisorsa saidState Farm's decision was predictable.
"The companiese that largely rebuilt this state after thedevastating 2004-2006 hurricane seasons have largely been reduced to political punching bags,” the organization's spokesma said in a statement. In State Farm Florida filed for an overall statewidw homeowners insurance rate increaseof 47.1 which was rejected by the on Jan. 12. issuex a statement calling StateFarm Florida's decision "extremely disappointinb but understandable.
" "This should serve as a wake-u call that conditions in Florida’s propertyu insurance market are unsustainable and we are financiall y unprepared for a major hurricane," Chamber President and CEO Mark Wilsonh said in a press release. "Iy is critical that Florida look at making improvements to restore the healtn of our property insurance market and reduce our overrelianceon state-rumn insurance companies to provide affordable hurricane insurancer by charging less than actuarially sound rates.
" Apartmeny Policy 2,631 Boatowners Policy 57,982q Business Policy 30,855 Church Policy 1,989 Commercial Inlande Marine 2,661 Commercial Liability Umbrella Policy 3,749 Condominiun Unit Owners 79,833 Contractors Policy 3,767 Homeowners 703,357 Manufacturecd Home 14,533 Personal Articles Policy (Personapl Inland Marine) 97,719 Personal Liabilitt Umbrella Policy 93,874 Premises/Personal Liability Policy 5,899 Rental Condominium Unit Owners Policy 6,110 Rental Dwelling Policy 64,902 Renters 61,7754