StoneRidge advises CITON in its formation to launch innovative insurance product
8/12/2008
INDIANAPOLIS, IN (August 12, 2008) – CITON Agency, Inc. (CITON), a company that provides catastrophic insurance with a specialization in niche products, has launched an innovative new hurricane/wind deductible elimination product designed to fill a gap for current policy holders and protect them in their time of need. ZERO SELECT Wind Deductible Elimination Plan will pay 100% of the total deductible if damage estimates exceed the deductible dollar amount. This product is currently only available in select Florida regions but will be expanded into additional at-risk markets later in 2008.
With 2008 projected to be a busier than average hurricane season and 96% of catastrophic hurricanes hitting after August 1st, now is the perfect time to provide some much needed protection to both commercial and residential property owners. This is comforting considering that over the last five years there have been more than 6 million catastrophic hurricane claims in the U.S. totaling more than $86 billion in losses (source: ISO’s Property Claim Services Unit).
“The consumer holds a tremendous risk given that deductible amounts continue to climb,” said Chairman and CEO Kenneth Gregg. “I had a friend who called me after experiencing one of the ’05 hurricanes,” noted Gregg. “His deductible was $25,000 and the damage estimates put the cost at over $50,000. He didn’t have an extra $25,000 to pay off his deductible. This was quite disconcerting for both me and my friend. Truth be told, the deductible has now become the greatest risk for property owners.”
Given CITON’s ability to provide much needed relief to insured, the company felt it best to launch the product on a conditioned basis as opposed to waiting until after hurricane season for the statewide launch. Currently, the managed capacity only allows for the product to be offered on a limited basis to all regions north of Palm Beach, Highlands, DeSoto and Sarasota counties. Each month capacity will increase, eventually covering the southern part of the state as well.
Gregg, a veteran of the insurance industry, spent two years designing and developing the product that agents can provide to current insurance policy holders for a more complete coverage. “Both Agents and property owners have expressed a tremendous interest in the product,” he states. “Currently it appears as if demand will exceed our allowable capacity, but we look forward to continually increasing capacity and being able to provide coverage for more property owners throughout Florida and beyond.”
Gregg’s industry knowledge has also allowed him to develop a process that only requires one call and one fax to file a claim and ensures they are processed within 48 hours if accepted. Gregg is certain that this new product line will enable a return to life and business quickly with minimal inconvenience.
StoneRidge Advisors, LLC acted as advisor to CITON.