Insurance Commissioner Mike Causey decided to decline a proposal that would have raised insurance rates significantly for some parts of North Carolina.
Rate increases, proposed by the N.C. Rate Bureau, would have ranged from 4.3% in some mountain counties to more than 99% in several coastal counties — and 26.1% in Richmond, Anson and Montgomery counties.
The price hikes were requested on behalf of the insurance companies that write policies in the Tar Heel State. The property and casualty industry reportedly suffered a $32.2 billion net underwriting loss during the first three quarters of 2023.
“I haven’t seen the evidence to justify such a drastic rate increase on North Carolina consumers,” Causey said in a press release issued Tuesday. “The Department of Insurance has received more than 24,000 emailed comments on this proposal, with hundreds more policyholders commenting by mail. Scores more consumers spoke during a public comment forum. North Carolina consumers deserve a more thorough review of this proposal. I intend to make sure they get that review.
““Homeowners were shocked with the high amount requested by the insurance companies, and so was I,” Causey added.
A hearing has been set for 10 a.m. Oct. 7. Causey will have 45 days to issue an order once the hearing concludes, according to NCDOI.
Most of the state’s congressional delegation opposed the measure.
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Rep. Richard Hudson, who represents the eastern sliver of Richmond County, praised Causey for the decision.
“I’m glad to see that Commissioner Causey listened to my and my fellow colleagues’ calls to reject plans to raise homeowner insurance rates for North Carolinians,” Hudson said in a statement. “This is a big win for hardworking families in the Sandhills and across our state.”
However, one of Causey’s opponents in the upcoming GOP primary criticized the commissioner for showing “weak and delayed leadership.”
“Instead of showing real leadership, Commissioner Mike Causey is playing political games again, as his day of reckoning with the voters approaches on March 5th,” said Andrew Marcus, volunteer firefighter and former insurance regulator who is running for the office. “Causey should have stood up for policyholders all along — before this filing — but he’s failed us and our rates have increased more than inflation.
“This is the first rate hearing he’s held in seven years because he’s been out to lunch and all too happy to settle with the insurance industry behind closed doors,” Marcus added. “Big insurance companies wouldn’t even consider such sky-high rate requests if Causey had shown any real leadership for the voters who hired him. I’ll fight for North Carolinians from day one and make sure this never happens again.”
Click here to read more about the race for insurance commissioner.
