Governor Rick Scott Statement of Appointment of Citizens Property Insurance President
Tallahassee, Fla. – “I would like to thank Tom Grady for his service as interim president of Citizens Property Insurance, and congratulate Barry Gilway on his appointment as the new president.
“During his leadership, Tom Grady worked hard to educate Floridians about the dangerous position in which Citizens has put this state. Citizens is too big. As of June 1, it has grown to about 1.5 million policies and roughly half a trillion dollars in total exposure while its cash on hand is only $6 billion. No matter how you crunch numbers, the experts acknowledge that Citizens has grown too big, and doesn’t have enough money to cover its policyholders in the case of a major hurricane, let alone the risk of getting hit more than once this season.
“Citizens has put Florida in a position where policyholders will have a sizeable assessment, but they won’t be the only ones paying dearly for it. Every policyholder in the state, even those who only have auto insurance policies, will also be assessed, regardless of their insurance company.
“I look forward to working with the Citizens Board and Barry Gilway to ensure Citizens is vigilant about not taking on additional risk and will support and nurture a robust private property insurance market in Florida. I expect Citizens to reduce the exposure to Florida’s families and return to being the insurer of last resort.”
Citizens Insurance Board Names New President
Orlando, FL (AP) - June 13, 2012 --
A private sector insurance executive will be the next president of Florida's Citizens Property Insurance Corp.
The state-created insurer's board on Wednesday selected Barry Gilway from Cockeysville, Md. He is currently president and CEO of Mattei Insurance Services.
Interim Citizens' president and former legislator Tom Grady was not among the final three ranked by a search committee.
Citizens is the state's largest property insurer for businesses and homeowners with roughly 1.5 million policyholders. It's become more than the insurer of last resort that it was intended to be when created a decade ago.
Officials have been discussing raising rates for new policyholders, but the proposal has come under fire from South Florida legislators.
Board chairman Carlos Lacasa did not anticipate discussing the proposal at the meeting.