Insurance Commissioner Mike Causey announces statewide 8% dwelling rate increase

Sunday, June 2, 2024

NC Insurance Commissioner pushes back against insurance rate hike

North Carolina Insurance Commissioner Mike Causey is pushing back against the state rate bureau after they asked for a hike in insurance rates.

RALEIGH, N.C. (WTVD) -- Insurance Commissioner Mike Causey announced Thursday he negotiated an average statewide 8 percent dwelling rate increase for North Carolina.

The increase is 42.6 percent points lower than the 50.6 percent increase requested by the NC Rate Bureau.

Unlike homeowners' insurance, dwelling insurance is primarily offered to non-owner-occupied residences with four or fewer units.

This new rate will take effect on Nov. 1. According to the press release, this increase will vary by territory.

"I am happy that we were able to save North Carolina consumers more than $151.7 million per year in this rate case over what the insurance companies requested," Causey said in the press release. "I'm also glad that we were able to avert a potentially lengthy and costly hearing on this case. Our top-notch legal, actuarial and property and casualty experts at the Department worked diligently to help protect the consumers' pocketbooks by limiting this increase to 8%."

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Because an agreement has been reached, there is no public hearing on July 22.

Earlier this year, Causey rejected the insurance industry's request for a 42% rate increase statewide for homeowners. This included a 99 percent increase for property owners in some parts of eastern North Carolina, specifically on the coast.

Causey said he and his department received over 25,000 emails, phone calls, and letters about the proposal, voicing their concerns.

"Inflation's already killing us. Our taxes are up. Groceries are up. Fuel prices are up. Our paychecks are not up. So, we're struggling to make ends meet. That's what I heard from people," Causey said. "I'm asking the insurance companies to do some soul-searching and cut their expenses. Look at cutting back some of these exorbitant salaries. For their CEOs and top executives and get tough on insurance fraud."