WASHINGTON — Most of North Carolina’s congressional delegation is asking Insurance Commissioner Mike Causey to reject a request that would significantly raise homeowners’ insurance rates across the state — and even higher in coastal counties.
U.S. Rep. Greg Murphy, joined by Rep. Richard Hudson and several other members of Congress, sent a joint letter to Causey on Friday asking the commissioner to reject the request from the N.C. Rate Bureau to raise rates an average of 42%.
Rates could rise up to 99.4% in the beach areas from the Crystal Coast southward to the state line (Carteret, Onslow, Pender, New Hanover and Brunswick counties).
The proposed rate increase for Richmond, Anson and Montgomery counties is 26.1%.
Citing a report from the credit-rating agency AM Best, Insurance News reported in December that the nation’s property and casualty sector suffered a $32.2 billion net underwriting loss during the first three quarters of 2023.
In the letter, the representatives tell Causey that constituents are already struggling with the effects of inflation and that such a high increase “will only exacerbate this cost-of-living crisis and make homeownership more difficult to achieve.”
“While we understand it is natural for insurance companies to raise their rates, a rate increase of such a large amount would be devastating for our constituents,” the letter reads.
The letter also acknowledges a 2020 rate-increase request of 24.5%, which Causey negotiated down to only 7.9%.
Last year, the commissioner also came to an agreement with the Rate Bureau to keep an increase on auto and motorcycle insurance lower than what was initially requested.
Click here to read more on the 2023 rates, which went into effect in December.
“The proposed surge in homeowner insurance rates will crush Eastern North Carolinians, particularly those residing along the coast,” said Murphy, who represents the 3rd District, which includes multiple counties along the coast from Currituck to Onslow.
“Record inflation and historic interest rates have already skyrocketed the cost-of-living for folks across the country. Increasing rates dramatically will supercharge this crisis and make homeownership even more difficult to attain,” Murphy continued. I urge Commissioner Causey to exercise his authority to deny these rate hikes and work to establish a constructive path forward.”
Hudson — who represents the eastern sliver of Richmond County — also cited inflation, blaming the current presidential administration.
“President Biden’s failed policies have led to historic inflation and higher interest rates, making living expenses more costly for families in the Sandhills,” Hudson said in a statement. “Raising insurance rates will only make the situation worse. I urge NC Insurance Commissioner Causey to intervene, reject these proposed hikes, and work with stakeholders to find a better solution.”
Also signing on to the letter were Reps. Virginia Foxx, David Rouzer, Don Davis, Chuck Edwards, Valerie Foushee, Jeff Jackson, and Wiley Nickel.
Murphy, Hudson, Foxx, Rouzer and Edwards are Republicans; Davis, Foushee, Jackson and Nickel are Democrats.
Causey issued a statement on Jan. 22 saying he has heard from multiple residents across the state “worried” about the proposal: “…and they’ve got good reason to be concerned.”
In the statement, Causey reminds the public that rates are not set by his office, but by the Rate Bureau, created by the N.C. General Assembly.
Causey says in the statement that, by law, the commissioner has 50 days from when the proposal is filed “to determine whether it meets certain very technical, mathematical standards.” During that time, the public can also submit comments by letter or email, with a deadline of Feb. 2.
The commissioner also scheduled a public hearing this week, but wasn’t there.
Causey’s explanation for not being at the hearing: “…the Rate Bureau has accused the Commissioner of Insurance in the past of prejudging a rate request before a notice of hearing may be issued. So, it is important that I not appear to have prejudged the request before our review is complete. However, I have heard the comments today and the countless comments submitted by our citizens, and I take them all very seriously.”
The commissioner said the DOI will be reviewing the proposal to determine if the proposal is “excessive, inadequate or unfairly discriminatory.”
If it is, Causey said, he will call for another public hearing and “will fight for our consumers to ensure that any proposed increase is reasonable and actuarially sound.”
“Since I have had the honor to serve as your Commissioner of Insurance, I have strived to ensure that any proposed increases to your insurance rates are fair, and I will continue to do so now and in the future,” Causey concluded. “But, just to be clear, although the Rate Bureau submitted the requested increase, the request has not been approved.”
