Florida officials say United Services Automobile Association Insurance Co. failed to provide sufficient support for the catastrophe model used in figuring expected hurricane catastrophe losses in justifying denial of the insurer’s proposed 40 percent statewide average rate hike.
According to the Florida Office of Insurance Regulation, the company also failed to justify the inclusion of additional profit loading and failed to provide sufficient supporting data for the selected annual loss trends.
“During the public hearing we heard from many policyholders whose household budgets are extremely strained by rising property insurance premiums,” said Insurance Commissioner Kevin McCarty. “If we are asked to approve even higher rates, we must demand that the request is fully justified, and that is just not the case with this filing.”
USAA has over 200,000 policies statewide in Florida. The five counties with the greatest amount of policyholders are Hillsborough with 18,169, Palm Beach with 14,128, Broward with 13,306, Brevard with 11,363 and Orange with 10,270.
The highest rates by county that USAA is requesting are 43.2 percent for Martin County and the lowest is 36.3 percent for Leon and Sumter Counties. A copy of the Notice of Intent to Disapprove is available at http://www.floir.com/pdf/USAA_NOI_06-10551.pdf.
Source: www.floir.com
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