PIP Filing Deadline Arrives
Today marks the date auto insurers must submit their rate filings reflecting savings associated with reforms to Florida’s Personal Injury Protection (PIP) laws. The legislature enacted a series of changes to Florida’s PIP laws based upon concerns that fraudulent and inflated claims were leading to unsustainable rate increases for the coverage. The legislation also tasked the Office of Insurance Regulation with analyzing the impact of the reforms. The OIR engaged Pinnacle Actuarial Resources, Inc. (Pinnacle) to calculate the estimated savings. The estimated savings range from 14.o% to 24.6%.
The amount that the reforms will benefit each insurer might vary from the estimate. The estimated savings are based on premium indications, which might not reflect the premium levels in effect for various insurers. In addition, PIP coverage comprises only a small part of the overall premium (about 20%), so the legislation will affect only a small part of the overall premium.