It either means that S&P’s rate filing archive doesn’t include Wyoming, or that homeowners is rate deregulated.
(It’s been almost 25 years since I did anything with personal lines in the US, but I have a faint, possibly erroneous, memory of there being minimal rate regulation in WY.)
I saw this yesterday as well. Was curious how anyone’s measuring NC. The industry has been under a 2-yr moratorium with the latest filing set for hearing in October still. I’m doubtful they compiled all the individual deviation filings due to complexity and lack of transparency.
I suspect it’s essentially a sumproduct of premium and whatever the headline change number is when submitted in SERFF…but it’s been over five years since I had to deal with any rate filings, much less personal lines, so…
The headline change # required to submit the filing doesn’t show up in the actual search results though, which is why I question it, only the supporting documentation. So unless a company puts it in their filing memo or manual pages (you should by the way, for consumer transparency imo) you can’t actually see it.
I would love to be proven wrong on this btw.
The forum software trims the headline. State Farm is apparently looking for +52% to renters, and +30% to homeowners.
For the first time in a long time, I dug up how to query for rate filing information through S&P.
Here’s a screengrab of part of what I see when I query for homeowners rate filings for top 10 carriers in NC:
My hypothesis is that the WSJ’s map is based on a sumproduct from an expanded version of that query.
I’m not curious enough to try to poke deeper to reconcile what’s in some of these filings vs what’s displayed on that query.
I signed up for some emails from First Street a while back. They are doing a webinar tomorrow on
“The Interconnection of Climate, Insurance, and Property Values”
I believe it is free, but didn’t complete the registration as I am busy. Use your own judgement on whether it might qualify as continuing ed.
Webinar Registration - Zoom?
Wasn’t really much new in there. Out of the 60 minutes, there was probably 5 minutes which might qualify for continuing ed. I liked the professor from Wisconsin with a couple of interesting graphs. Most of the rest was really obvious stuff that you’d read in a climate brochure.
They leave out of these articles the fact that the department was so backlogged that many of those filings were the first for the company in multiple years…
They like to drag things out.
Prior to this they got +4.0% on 9/12/23 and the magic +6.9% on 4/6/21 and 1/29/19.
Amazingly the +4.0% filing (21-1436) didn’t get approved until 6/12/2023 (effective three months to the day later) but according to the timeline above their +34.1% filing (23-1267) had objections as early as 5/10/2023 before the other filing was approved (if I’m reading all this right, and I’d like to think that I am).
The net trend for 23-1267 was +7.6% and the review process took from 4/14/2023 to 6/12/2024, so 14 months of trend so all else being equal the rate need climbed +9.2% while Allstate played ping pong with the CDI. They should be allowed to update the effective date and trend periods with each CDI objection so the rate need they are asking for can increase commensurately.
Anyone have any experience with both S&P and AM Best’s rate filing products that has an opinion on one vs the other?
In Australia (which also has a significant housing shortage), the number of households under affordability stress has increased to 15%. “These households, on average, spend 9.6 weeks of their gross income on home insurance, a figure that is seven times higher than the national average.”
So, for those households, roughly 20% of net income on home insurance, never mind the mortgage repayments.
California has a really big problem. They are going to end up like Florida at this rate because of their wildfires situation.
Map looks scary:
Recently learned how much our neighbors are paying for their insurance. They only live about 0.5 miles away from us but they are in a high-risk zone for wildfires, and we are just outside that zone.
Ours is roughly $2k, and theirs is closer to $10k! Crazy the discrepancy when we live so close to each other. I can imagine most insurers will need to exit the market if there isn’t some big adjustment in how everything gets rated. So similar to Florida but maybe a few years behind.
I feel like fires are easier to mitigate than flood
Don’t build too close to each other and chop any nearby trees down
Flooding on the other hand….
Forest fires can jump lakes that are 2-3 miles wide.
Even a slight breeze can carry an ember a long way. Add in dried out vegetation from a drought and wallah, you have a tinder box waiting to explode.
Houses generally take some time to burn to the ground in a forest fire. If you’re able to spray water at spot fires around the house you can save the house. Of course, if you’ve been evacuated this will be difficult unless there’s some way to remotely aim a sprinkler at spot fires.
