OIR Approves Citizens Rates
The Office of Insurance Regulation has approved rates for Citizens’ homeowners and dwelling programs. The average rate increase is 10.8% for homeowners insurance and 8.8% for the dwelling program. Rate increases for sinkhole coverage are higher (by percentage), although less than Citizens’ indicated rates.
The OIR approved the rates through an Order (attached). Citizens’ ratemaking statute is unique and requires it to submitted recommended rates. The OIR then reviews the recommendations but has responsibility for setting the final rates.
“I would like to express my gratitude to all those who provided input for the Citizens rate filing, especially as we considered the impact of proposed substantial rate increases for specific areas within the state. The final rates indicate a more reasonable approach toward moving a significant portion of Florida’s demographic to actuarially-supported rates. Our primary goal is to ensure Citizens policyholders are treated fairly and retain an opportunity to return back to a robust private insurance market as the Florida Legislature intended,” stated Florida Insurance Commissioner Kevin McCarty.
Citizens has additional filings that remain under review. The OIR announced that it expects to complete its review of the filings by the following dates:
October 8, 2012:
Mobile Home Multi-Peril (#12-14394 & #12-14395)
Mobile Home Physical Damage (#12-14400 & #12-14401)
October 19, 2012:
Commercial Lines Account (#12-14702, #12-14703, #12-14707)
Commercial Lines – wind only (#12-15425, #12-15426, and #12-15611)