Property & Casualty Insurance Update — Senate Business, Financial Services, Gaming & Trade Committee
Summary
This is a Property & Casualty insurance update for the Senate Business, Financial Services, Gaming & Trade committee, dated November 29, 2023. It states that approximately 750 P&C companies are authorized in WA and lists $1.7 billion deposited to General Fund, including $5.2 million from fines, $50 million from fees and $1.6 billion from premium tax. It states that the OIC reviews an average of 3200 policy forms a year and approves about 3000 a year, and reviews an average of 3000 rate filings a year and approves about 2700 a year. It also describes the WA FAIR Plan as an insurer of last resort providing basic property insurance on dwellings and commercial buildings when the owner is unable to find coverage in the normal market.
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“Property & Casualty Insurance Update — Senate Business, Financial Services, Gaming & Trade Committee.”
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Property & Casualty insurance update
Senate Business, Financial Services, Gaming & Trade committee
November 29, 2023
Current state of P&C markets
Approx 750 P&C companies authorized in WA
another 200 that only sell Casualty.
• $1.7 billion deposited to General Fund
• $5.2 million from fines
• $50 million from fees
• $1.6 billion from premium tax
2023 WA Assembly Day November 29, 2023 2
P&C Licensees
73,138 producers- 15,035 resident (84% are non-
resident)
18,316 independent adjusters- 738 resident
255 public adjusters- 71 resident
100+ Emergency adjuster registrations (due to Gray
fire and Oregon Rd. fire)
2023 WA Assembly Day November 29, 2023 3
P&C consumer complaints increasing
1600
1400
1200
2019 Average 1000
800
600
400
200
0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023
Liability 28 37 57 44 34 29 45 38 29 35 41 41 13 30 24 20 20 30 22 30
Fire, Allied Lines, and CMP 30 29 35 31 28 56 87 22 31 43 47 23 36 42 30 42 33 30 36 50
Homeowners 177 234 212 198 192 188 197 226 232 275 308 421 296 342 345 339 311 362 439 430
Auto 669 700 639 663 574 646 510 553 486 611 666 980 939 898 732 876 739 801 862 939
2023 WA Assembly Day November 29, 2023 4
P&C dollars recovered for consumers
$8,000,000
$7,000,000 $6,726,784
$6,049,466
$6,000,000
$5,033,451
$5,000,000
$4,119,448
$4,000,000
$3,366,263
$3,171,176
$3,002,173
$3,000,000
$2,507,695 $2,602,823
$2,238,208
$1,950,227
$2,000,000
$1,000,000
$-
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
2023 WA Assembly Day November 29, 2023 5
Policy form filings
The OIC reviews an average of 3200 policy forms a
year and approve about 3000 a year
From To Action # of Filings
1/1/2021 12/31/2021 Approved 3292
Disapproved 2
Withdraw 177
1/1/2022 12/31/2022 Approved 2821
Disapproved 1
Withdraw 219
1/1/2023 10/23/2023 Approved 2467
Disapproved 2
Withdraw 130
2023 WA Assembly Day November 29, 2023 6
Rate filings
The OIC reviews an average of 3000 rate filings a year
and approve about 2700 a year
From To Action # of Filings
1/1/2021 12/31/2021 Approved 2879
Disapproved 1
Withdraw 225
Closed 65
1/1/2022 12/31/2022 Approved 2639
Disapproved 1
Withdraw 254
Closed 25
1/1/2023 10/23/2023 Approved 2683
Disapproved 0
Withdraw 162
Closed 23
2023 WA Assembly Day November 29, 2023 7
Homeowner rate filings
Average rate change Average days between submission
and approval
14.0%
12.0% 250
10.0% 200
8.0%
150
6.0%
100
4.0%
2.0% 50
0.0% 0
2020 2021 2022 2023 2020 2021 2022 2023
2023 WA Assembly Day November 29, 2023 8
Auto rate filings
Average rate change Average days between submission
and approval
14.0%
12.0% 250
10.0% 200
8.0%
150
6.0%
100
4.0%
2.0% 50
0.0% 0
2020 2021 2022 2023 2020 2021 2022 2023
2023 WA Assembly Day November 29, 2023 9
Rate review efforts
P&C rate review team expanding from 5 actuaries
and analysts to 8 in Q1 2024.
OIC led webinar to industry on October 3rd 2023 to
work on better initial filings
Our internal goal is to have an average response time
of less than 10 days by end of 2024
2023 WA Assembly Day November 29, 2023 10
WA FAIR Plan- Insurer of last resort
Provides basic property insurance on dwellings and
commercial buildings when owner unable to find
coverage in normal market.
Insurance companies are required to include the
name and telephone number of the FAIR Plan in all
property cancellation and non-renewal notices.
2023 WA Assembly Day November 29, 2023 11
WA FAIR Plan- Insurer of last resort
State Florida California Louisiana Oregon Washington
Number of 1,330,000+ 325,000+ 120,000+ 1250+ 130
policies in effect
2023 WA Assembly Day November 29, 2023 12
IBHS Research Center
2023 WA Assembly Day November 29, 2023 13
IBHS Research Center
2023 WA Assembly Day November 29, 2023 14
IBHS Research Center
2023 WA Assembly Day November 29, 2023 15
IBHS Research Center
2023 WA Assembly Day November 29, 2023 16
IBHS Research Center
2023 WA Assembly Day November 29, 2023 17
State risk mitigation grant programs
• The Strengthen Alabama Homes program provides grants to Alabama residents for residential wind mitigation on existing owner-occupied, single-family
homes.
• MySafe Florida Home provides free home inspections and a matching grant program to help homeowners retrofit properties making them less vulnerable to
hurricane damage.
• The Louisiana Fortify Homes program authorizes the insurance commissioner to make grants to retrofit roofs of insurance property using the IBHS fortified
standards.
• The North Carolina Insurance Underwriting Association Strengthen Your Roof program offers grants to help eligible policyholders in beach
communities better protect their homes against the threat of hurricanes.
• The South Carolina Safe Home program provides matching and non-matching grant funds to help property owners retrofit their homes to make them more
resistant to damage from hurricanes and high wind.
• The Strengthen Minnesota Homes program established a new pre-disaster mitigation program to help Minnesotans upgrade their roofs to make them more
resistant to high wind, hail and other extreme weather events
2023 WA Assembly Day November 29, 2023 18
State risk mitigation grant programs
The regulatory account of the Department of Insurance
(DOI) is used to create an internal unit (5-7 FTEs.)
The Legislature creates a new mitigation account and
appropriates general fund monies to be used for
mitigation grants.
The DOI processes applications, uses grant funds to
directly pay contractors and evaluators.
When the mitigation efforts show a reduction in claims,
allows insurance companies to provide rate discounts.
2023 WA Assembly Day November 29, 2023 19
Questions?
David Forte Andrew Davis
Policy Advisor, P&C Policy Analyst, P&C
david.forte@oic.wa.gov andrew.davis@oic.wa.gov
360-725-7268 360-725-7170
Connect with us!
• Facebook: https://www.facebook.com/WSOIC
• Twitter: https://twitter.com/WA_OIC
• www.insurance.wa.gov
2023 WA Assembly Day November 29, 2023 20
Wildfire Prepared Homes
Watch IBHS's Wildfire presentation for Washington state (youtube.com)
2023 WA Assembly Day November 29, 2023 21
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