Orange Insurance Exchange approved for business in Florida

Shortly after a hurricane hit Florida, a new property and casualty insurer, Orange Insurance Exchange, was approved to operate in the state, according to Insurance Journal.

The Florida Office of Insurance Regulation approved Orange Insurance Exchange on September 1, alongside other insurers following a similar model, like Tower Hill Insurance Exchange and Kin .

Starting with a surplus of $25 million, the company aims to begin operations in December and fully establish their reinsurance program by June 2024. It will offer homeowners’ and commercial residential policies.

While Orange is new, its leadership has extensive industry experience. Donald Matz has been associated with Tower Hill Insurance Group for over two decades and Producers National Corp. for a year. Michael McNitt, Orange’s president of underwriting, previously led Cabrillo Coastal, a managing general insurance agency. Cabrillo Coastal will also have a stake in Orange and manage its policies. Additionally, Daniel Riddle from Cabrillo will serve as Orange’s CFO.

The Florida Office of Insurance Regulation has recently approved other insurers, such as Orion180 Insurance Co. and Mainsail Insurance Co.

Orange’s operational model involves issuing policies to subscribers who contribute to the surplus. Initial surplus is sourced from investors who bought surplus notes. Policyholders will repay the interest and principal on these notes until they fully own the company.

Like other insurers in the state, they’re cautious about roof exposures due to increasing costs and fraudulent claims. Their policy provides limited coverage for roof damages, with the payout amount decreasing based on the roof’s age.