HCI’s CORE receives approval to operate in Florida
1st December 2023 – Author: Akankshita Mukhopadhyay
HCI Group, Inc. announced its sponsored reciprocal insurer, Condo Owners Reciprocal Exchange (CORE), obtains a certificate of authority from Florida regulators, allowing it to transact insurance in the state.
The Florida-based holding company, with interests in homeowners insurance, IT services, real estate, and reinsurance, marks its entry into the commercial residential insurance market with this development.
CORE, set to commence operations in February 2024, aims to enter the commercial residential insurance market in Florida.
The insurer plans to assume policies representing approximately $75 million of in-force premium from Citizens Property Insurance Corporation, the state-backed insurance company in Florida.
Paresh Patel, HCI’s Chairman and CEO, emphasised the significance of CORE’s launch, marking HCI’s entry into the commercial residential insurance sector in Florida.
Patel attributed the swift commencement of operations to the technology infrastructure and management expertise within HCI.
He expressed gratitude for the dedicated efforts of the Florida Office of Insurance Regulation in approving CORE’s formation, highlighting the collaborative efforts to bring additional choices to Florida’s insurance market.
CORE operates as a “reciprocal insurer,” an unincorporated aggregation of at least 25 policyholders working through an attorney-in-fact to provide insurance among themselves.
While essentially owned by its policyholders, CORE’s day-to-day operations, including underwriting, claims, and management services, are outsourced to an attorney-in-fact for a predetermined management fee.