2024 WA Legislative Assembly Day — Office of the Insurance Commissioner (December 11, 2024)
Summary
Slides for 2024 WA Legislative Assembly Day, dated December 11, 2024, listing Bryon Welch, Deputy Insurance Commissioner, and David Forte, Senior Policy Advisor, Property & Casualty. The slides give WA homeowner claim costs of $941,806,000 for 2018 and $1,988,128,000 for 2023, and private passenger auto claim costs of $3,441,366,000 for 2018 and $5,404,919,000 for 2023. They say a new rule, effective June 1, 2024, requires all insurance companies to tell policyholders the reasons behind a premium increase. Other slides cover nonrenewals and cancellations and the WA FAIR Plan, described as insurer of last resort.
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“2024 WA Legislative Assembly Day — Office of the Insurance Commissioner (December 11, 2024).”
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2024 WA Legislative Assembly Day
December 11, 2024
Claim costs directly impact insurance pricing
WA Homeowner’s claim costs:
• 2018: $941,806,000
• 2019: $1,075,153,000
• 2020: $1,114,056,000
• 2021: $1,364,292,000
• 2022: $1,842,832,000
• 2023: $1,988,128,000
Insurance hard market December 11, 2024 2
WA Homeowner rate filings
Insurance rate review December 11, 2024 3
Claim costs directly impact insurance pricing
WA Private Passenger Auto claim costs:
• 2018: $3,441,366,000
• 2019: $3,587,152,000
• 2020: $2,934,897,000
• 2021: $3,729,864,000
• 2022: $4,924,891,000
• 2023: $5,404,919,000
Insurance hard market December 11, 2024 4
WA PPA rate filings
Auto Rate Changes
Top 20 Companies
30.0%
as of December 1, 2024
24.5%24.7%
25.0%
20.0%
17.5%17.5%
15.0%
10.0%
7.1%
6.7%
5.7% 5.9%
4.6% 4.4%
5.0% 3.5%
3.1% 2.9% 3.4% 3.1% 3.1% 2.8%
2.4% 2.2% 2.3%
2.0%
1.5%
0.4% 0.3% 0.1%
0.0%
0.0%
-1.9%
-3.0%
-5.0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Change Requested Change Received
Insurance rate review December 11, 2024 5
Form and Rate filings
The OIC reviews an average of 3200 policy forms and
1600 rate filings a year and approve about 3000
forms and 1500 rate filings a year
From To Action # of Filings
1/1/2021 12/31/2021 Approved 1646
Disapproved 1
Withdraw 142
Closed 43
1/1/2022 12/31/2022 Approved 1468
Disapproved 1
Withdraw 180
Closed 22
1/1/2023 12/31/2023 Approved 1591
Disapproved 0
Withdraw 115
Closed 20
Insurance rate review December 11, 2024 6
Rate review standard
RCW 48.19.020 Rate standard.
Premium rates for insurance shall not be
excessive, inadequate, or unfairly
discriminatory.
Insurance rate review
December 11, 2024 7
Rate review time- Homeowners
Number of times OIC sent objections Average Days between request and approval by #
of objection letters 2023-24
0 28
1 74
2 112
3 252
4+ 257
Insurance rate review
December 11, 2024 8
Rate review time- Auto
Number of times OIC sent objections Average Days between request and approval by # of
objection letters 2023-24
0 39
1 72
2 117
3 114
4+ 99
Insurance rate review
December 11, 2024 9
Transparency in insurance costs
A new rule requires all insurance companies to tell their policyholders the reasons
behind a premium increase.
The new regulation applies to auto and homeowners insurance, including
manufactured homes, condominiums and renters insurance.
Phase 1 effective June 1, 2024.
Phase 2 effective June1, 2027. However, the Insurance Commissioner is considering
rulemaking to extend phase 2 to 2029.
Insurance and Wildfire December 11, 2024 10
Nonrenewals and Cancellations
Expe rie nc e Ye a r Ins ure r Initiate d Tota l Othe r Re a s ons
Nonre ne wa ls Ca nc e llations
2021 11,718 13,994
2022 14,189 13,008
2023 18,428 14,809
Percent of 2.5 million .73% .6% (combined
policies 1.33%)
Insurance and Wildfire December 11, 2024 11
Nonrenewals and Cancellations
Insurance and Wildfire December 11, 2024 12
Nonrenewals and Cancellations
Insurance and Wildfire December 11, 2024 13
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.
Insurance and Wildfire December 11, 2024 14
WA FAIR Plan- Insurer of last resort
State Florida California Louisiana Oregon Washington
Number of 1,330,000+ 410,000+ 120,000+ 1500+ 289
policies in effect
Insurance and Wildfire December 11, 2024 15
WA FAIR Plan- Insurer of last resort
Insurance and Wildfire December 11, 2024 16
Mitigation is the key for insurability
Perception of risk or actual risk = insurability.
Cost of claims = price of insurance.
Wildfire:
Community mitigation- Firewise and NFPA standards
Home mitigation- Insurance Institute for Business &
Home Safety Wildfire Prepared Homes is the insurance
industry’s upcoming standard.
Insurance and Wildfire December 11, 2024 17
Mitigation is the key for insurability
Insurance and Wildfire December 11, 2024 18
P&C complaints since 2021
4000
3500
3000
2500
2000
1500
1000
500
0
2020 2021 2022 2023 2024 So Far
Auto 2216 3045 3276 3331 3483
Homeowners 825 1265 1335 1593 1978
Liability 139 130 92 106 102
Fire, Allied Lines, and CMP 199 142 156 151 213
Miscellaneous 593 601 633 587 544
Consumer Advocacy Program: Property and Casualty Statistics December 11, 2024 19
Suspected violations since 2020
2024 So Far 435 339 46 81
2023 521 272 18 116
2022 377 123 18 111
2021 234 107 17 62
2020 285 96 24 96
0 100 200 300 400 500 600 700 800 900 1000
Auto Homeowners Liability Fire, Allied Lines, and Commercial Miscellaneous
Consumer Advocacy Program: Property and Casualty Statistics December 11, 2024 20
P&C consumer policy benefits recovered since 2020
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024
Consumer Advocacy Program: Property and Casualty Statistics December 11, 2024 21
Questions?
Bryon Welch
Deputy Insurance Commissioner
bryon.welch@oic.wa.gov | 360-725-7037
David Forte
Senior Policy Advisor, Property & Casualty
david.forte@oic.wa.gov | 360-725-7268
Connect with us!
• Facebook: https://www.facebook.com/WSOIC
• Twitter: https://twitter.com/WA_OIC
• www.insurance.wa.gov
2024 Assembly Days December 11, 2024 22
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