GSP Insurance Group Blog
2022 Insurance Company Insolvencies
We had an earlier blog post in May regarding the reason for rising insurance rates in the Lowcountry, and one among the many reasons was the number of insurance companies to be declared either Bankrupt or insolvent. So far this year alone we have seen Gulfstream Property and Casualty, St. Johns Insurance Company, Avatar Property and Casualty, Lighthouse Property Insurance Corp, Fed Nat and now Southern Fidelity have all either gone insolvent or are "restructuring".
Southern Fidelity has about 69,000 policies between the states of South Carolina, Louisian, and Mississippi and was declared insolvent last week.
Southern Fidelity Insurance agreed to an order of liquidation from the Florida Office of Insurance Regulation. As part of the liquidation order, ALL remaining active Southern Fidelity policies will be cancelled effective 12:01 a.m. on 07-15-2022.
As of this announcement, there is no indication another carrier will assume the current policies or offer a transition plan. All current Southern Fidelity policies will have to be replaced by 7-15-2022.
Make sure you reach out to your agent to look for other options if this insolvency affects you to avoid a potential lapse in coverage, which would undoubtedly increase your premiums for some time into the future. Feel free to reach out to GSP Insurance Group if you need help looking for alternative options or have any questions 843.707.4473, email firstname.lastname@example.org or visit our website at www.gspins.com.
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