Pennsylvania Acting Insurance Commissioner Michael Humphreys announced that, in the first quarter of 2023, the Pennsylvania Insurance Department (PID) has already saved consumers more than $41 million in annual property and casualty (P&C) insurance premiums through its review of insurance company rate filings.
PID regulates insurance products to ensure that rates are not excessive, inadequate, or unfairly discriminatory. Insurance companies must file their proposed rate changes for review by PID actuarial staff before the rate changes take effect. PID then either approves, approves with adjustments, or disapproves the proposed rate changes. The vast majority of these savings, or $34.2 million, have been in personal auto insurance premiums.
“Governor Shapiro and I will always come down on the side of consumers. In our analysis of rate filings, we are committed to providing Pennsylvanians with affordable options when it comes to insurance coverage on their cars, homes, and properties,” Humphreys said. “We also always encourage consumers to shop around and find the coverage that best meets their needs for the best price.”
Since the pandemic, PID actuarial staff have been closely analyzing and challenging future assumptions, requiring recent claims experience with each rate filing. Auto insurance rates have seen increases across the country, driven largely by inflation; the cost of replacement cars, parts, and labor for car repairs has increased dramatically.
“PID actuarial staff carefully review each rate filing, and the assumptions and procedures insurers use to justify their proposed rate change,” said Humphreys. “Insurers use different types of data or methodologies to rationalize their rates, but when considering multiple factors such as insurer’s experience, competitive experience, external trends, indications, and loss experience, PID challenges their assumptions and often gets the rates reduced below what the insurers had intended to charge. Most insurers cooperate with us when we disagree with their assumptions, but if we need to reject a rate increase request, we absolutely do.”
Consumers who have a question about their insurance or need to file a complaint may contact the Insurance Department’s Bureau of Consumer Services at 1-877-881-6388 or online.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.