HCI Group’s Tailrow Insurance Exchange Successfully Assumes Policies from Citizens Property Insurance
In a significant development for the Florida insurance landscape, HCI Group, Inc., an insurtech based in the state, has achieved a major milestone through its sponsored reciprocal insurer, Tailrow Insurance Exchange. The exchange has successfully taken on nearly 14,000 insurance policies, amounting to approximately $35 million in in-force premiums, from Citizens Property Insurance Corporation, Florida’s state-backed insurance provider.
The official assumption of these policies by Tailrow became effective on February 18th, 2025. Tailrow is poised to offer personal residential insurance policies and has received approval to underwrite up to 20,000 policies. Out of this, the company made about 18,000 offers and successfully assumed just under 14,000 policies, reflecting an impressive 76% acceptance rate among policyholders.
Paresh Patel, the Chairman and Chief Executive Officer of HCI, expressed enthusiasm about this development, stating, “We are excited to complete this assumption and officially commence operations at Tailrow. The technology we’ve built and our management expertise enabled us to identify attractive policies at Citizens for assumption and achieve a high adoption rate by policyholders.”
The Florida Office of Insurance Regulation granted Tailrow’s application for a permit to operate as an authorized domestic insurer and provide homeowners multi-peril insurance within the state in April 2023. This marks a strategic expansion for HCI’s insurance subsidiaries, which previously took over over 42,000 policies worth around $200 million in in-force premiums from Citizens Property Insurance Corporation in October 2024.
Prior to this, in December 2023, TypTap Insurance Company also assumed roughly $30 million of in-force premiums from Citizens. Additionally, in November 2023, Homeowners Choice took on approximately 53,750 policies from Citizens, resulting in a total of about $196 million in in-force premium. These moves illustrate a broader trend of private insurers stepping in to provide coverage amidst the evolving landscape of Florida’s insurance market.
