Florida’s Windhaven Insurance is Ceasing all New and Renewal Business

Another sign of Florida’s troubled property insurance market popped up this week as Windhaven Insurance alerted employees and agents that it is winding down and its assets are being foreclosed on by their lender who will eventually sell the company to another insurer. 

Windhaven’s problems extend beyond Florida, Windhaven National Insurance Co. which is a Texas-based private passenger auto insurer, is currently being placed into receivership by the Texas Department of Insurance.

A recent Insurance Journal article detailed a message that was sent to Windhaven’s agents on February 26 which said that it was ceasing all new and renewal business for Windhaven 

Companies which includes Windhaven Insurance Holdings Corp., Windhaven Underwriters, Windhaven Select, Windhaven Claims Management, Windhaven National Insurance Co. and The Hearth Insurance Group. These companies provide home and auto insurance in both Florida and Texas. 

According to the Insurance Journal article, the entire message is as follows:

“To Our Valued Agents, This notice is to inform you of important changes that will be occurring to the Windhaven, ClutchAnalytics and The Hearth businesses. We have ceased all new business and renewal business in all FL and TX programs for Windhaven and the Hearth. We are winding-down our business operations. One of our lenders will foreclose on a number of assets providing collateral for its loan. As part of the foreclosure process the lender will sell the foreclosed assets at an auction slated to occur on March 4th. If a sale occurs we expect that the buyer may seek to continue the producer agreements or want to work with you to make new producer agreements. Please note, we cannot guarantee that an auction will occur, that it will be successful or if or which producer agreements a buyer may look to continue. We regret the impact this decision may have.”

At the Windhaven Claims Management’s facility in Miami employees were told that they would be laid off starting on Feb 28, 2020. Employees were told that the company had been unable to find financing that would allow the company to continue operating and its current lender will be starting to sell the assets of the company at a public auction which will take place on March 4, 2020. 

 “This notice … is to inform you that your position will be eliminated due to the facility shutdown, and the company is forced to lay you off effective February 28, 2020,” the message to employees read.

Windhaven National also sells auto insurance policies in Florida and currently has 30,600 policies in the Sunshine State as of Dec. 31, 2019. According to their website, The Hearth Group (another Windhaven company) writes over $500 million of premiums in the state of Florida and had about 700 employees. Windhaven Insurance Co. (WIC), has about 73,000 active auto policies in Florida as of Nov. 30, 2019. 

People that had an auto or home policy with Windhaven will need to find new Florida homeowners insurance coverage. “There is a competitive auto insurance market in Florida, and OIR recommends that, if policyholders receive a cancellation notice, they reach out to their agent to find alternate coverage,” said a Florida Department of Financial Services in the Insurance Journal article.