Pennsylvania Says It Blocked $180 Million in Auto, Home, Other P/C Insurance Hikes

ltcinsuranceshopper By ltcinsuranceshopper February 2, 2025


The Pennsylvania Insurance Department (PID) reported that in 2024 it refused to approve $180.3 million in annual property/casualty (P/C) insurance premium increases in the state through its rate review processes.

The PID said it rejected premium increases sought by insurers for personal auto, homeowners, renters and flood insurance policies.

Through its rate review process in 2024, PID said it saved consumers:

  • $119.7 million in personal auto premiums;
  • $42.9 million in homeowners/dwelling fire premiums;
  • $5.6 million in personal umbrella premiums;
  • $3 million in pet insurance premiums; and
  • $9.1 million in other types of P/C insurance premiums.

Insurance companies must file their proposed rate changes with the department before the rate changes take effect. PID’s actuarial staff review the proposed rates to ensure they are justified.

“Although we recognize that insurance rates have been increasing year-over-year to account for increases in repair and replacement costs of the items we insure, PID will always aim to keep as much money in Pennsylvanians’ pockets as possible by never approving rates that are excessive, inadequate or unfairly discriminatory,” said Insurance Commissioner Michael Humphreys in a release.

According to the department, Pennsylvania’s insurance market is competitive with more than 1,200 insurers.

In a separate announcement in October, PID said its rate review process and reinsurance program reduced the 2025 Affordable Care Act (ACA) health insurance rates for Pennsylvanians by approximately $77.2 million. Most insurers currently offering individual market coverage in the state will continue to provide plans in 2025 with a statewide average increase of 6%, which is two percentage points lower than what insurers initially requested.

The Commonwealth will see a 7.6 percent average increase in the small group market.

Additionally, OID said the state will see an increase in marketplace competition for several counties as some insurers will be selling plans in new counties.

Topics
Auto
Pennsylvania
Property Casualty

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