First Community Seeks 23% Florida Homeowners Insurance Rate Hike

A group of Florida homeowners could see a double-digit increase in their property premiums if regulators go along with their insurer’s rate request.

Florida regulators are holding a public hearing today to consider the First Community Insurance Co.’s request that it can raise its rates on dwelling and fire policies by a statewide average by 23.3 percent.

If approved, the rate changes would apply to new policies as of April 1 and renewal policies as of April 26.

The public rate hearing is not the first on this filing. Last October, regulators met with the insurer’s executives to consider a 26.7 percent rate increase. At the time, company officials explained that the insurer needed the increase due to higher reinsurance costs and lower premiums, which have been the result of various mitigation credits in hurricane-prone areas.

Regulators and company executives, however, hit a stalemate over opposing loss trends and underwriting profit margin. The Florida Office of Insurance Regulation Actuary Steve Alexander said his analysis yielded an eight percent difference in premium trends. Alexander also used a smaller profit margin. He recommended a rate change of three-tenths of a percent, significantly lower than the insurer’s request for a 26.7 percent.

The insurer later pulled the filing so it could have more time to review the data and address the regulator’s concern.

First Community is a wholly-owned subsidiary of the St. Petersburg, Florida-based Bankers Insurance Group. In 2009, the latest data available, the insurer reported that it collected in $28.8 million in net written premiums with a net income of $864,000. The insurer also reported it had $20 million in surplus.

Topics Florida Carriers Pricing Trends Homeowners