Office Denies Proposed Rate Hike For USAA Insurance Company
TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today announced that he has issued a Notice of Intent to Deny a request by United Services Automobile Association Insurance Company (USAA) to increase residential property insurance rates by a statewide average of 40 percent.
The primary reasons cited for the denial are the company failed to provide sufficient supporting data for the catastrophe model used in the determination of the expected hurricane catastrophe losses. Further, the model used is not currently accepted by the Florida Commission on Hurricane Loss Projection Methodology. Also, the company 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 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:
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