The Property Casualty Insurers Association of America (PCI) is urging Gov. Frank Murkowski to sign into law legislation which would modernize Alaska’s system for regulating forms and rates for most lines of property/casualty insurance – including auto, homeowners and commercial.
Sam Sorich, PCI’s regional vice president, said the legislation, HB 216, would establish a 10 percent band, which would allow insurers to change rates within that range without obtaining approval first from the Dept. of Insurance. Changes greater than the 10 percent band would still require department prior approval before implementation.
“This modernized approach will give consumers access to new rating plans and products without the delays that can occur with the prior approval process,” said Sorich.
“Alaska’s current regulatory system discourages insurers from providing innovative products and rate changes because such changes often face lengthy review processes. When the rates and products are finally approved, they may no longer relate to market conditions and consumer needs.
“The competitive vigor that the bill will foster in the insurance marketplace will help to assure that insurance coverage is available and competitively priced. At the same time, consumers will have the assurance that the insurance commissioner’s authority to regulate rates will not be diminished,” Sorich wrote in his letter to the governor.
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