Hartford Denied Rate Increase In Florida

The Hartford Insurance Group said it will not contest a decision in Florida denying a rate increase in its homeowners insurance, but the company plans to file for an increase for next year.

On Monday, Florida Insurance Commissioner Kevin McCarty affirmed a decision of an administrative law judge to deny Hartford Insurance Group’s request for an increase in homeowner’s insurance rates for the current rate year.

Today, a Hartford spokesman with the Hartford, Conn.-based insurer said the carrier would not appeal the administrative law judge’s decision to a state court but would, as required by law, re-file for a rate increase for the coming year. The insurer has as yet not determined how much of an increase it will seek, the spokesman said.

According to a spokesman for the Florida Office of Insurance Regulation, all insurers must file their rates annually, whether it calls for an increase, a decrease or involves a decision to maintain existing rates.

“We are disappointed by this decision, but look forward to working with the OIR [Office of Insurance Regulation] on future filings to most effectively serve our customers in Florida,” said Tom Hambrick, a Hartford spokesman.

Hartford initially reduced its rates by an average of 13.6 percent, effective last June 1, in accordance with the department’s request that they file for rates based on the savings they could presume would result from having available cheaper reinsurance through the state-run property insurer, according to a department official.

Last year the Florida legislature expanded the Florida Hurricane Catastrophe Fund (CAT Fund) to $28 billion—a $12 billion increase allowing insurers to purchase less expensive reinsurance and pass the savings onto consumers.

Insurers were allowed to file new rates based on the actual cost of the reinsurance that would be effective last Sept. 30. At that time Hartford requested an average increase of 39.6 percent, which was denied.

According to an insurance department staff official, 60 percent of insurers either kept their rates the same or lowered them in the filing.

No insurer who requested increases was granted one, the department spokesman said.