Mississippi Insurance Commissioner Mike Chaney said he’s taking steps to discourage companies from seeking higher rates for the Gulf Coast or other specific areas of Mississippi.
Chaney said he will require that insurance companies initially file requests for rate increases that would apply statewide. He called this a departure from department practice of allowing companies to request higher rates only for south Mississippi. But he said past increases have driven rates high enough in south Mississippi for now.
Insurers would still be allowed to make their cases for higher rates in particular zones but Chaney said he it will be more difficult.
“We’re trying to bring some reasonableness to how they handle their rates,” he said.
He said the latest filing from Allstate complies with this new policy. The company has asked for a 65-percent rate hike statewide. Chaney said he will probably deny the full increase, which will allow Allstate to file for a lower increase or have a public hearing on its request.
Allstate’s request follows one by State Farm Fire & Casualty Co. to increase rates on the coast by 45 percent. Chaney denied that increase but did grant State Farm a 19.5 percent increase only for Harrison, Jackson and Hancock counties.
The National Association of Insurance Commissioners said most states do allow zoning for rate requests.
Chaney said he is concerned that some insurance companies are trying to price themselves out of the catastrophe market, which will leave coastal risk concentrated in the state-run wind pool.
Topics Mississippi
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