Residents and local politicians from throughout North Carolina begged the Department of Insurance and Commissioner Mike Causey to reject an average statewide 42.2% homeowners rate increase proposed by the North Carolina Rate Bureau during the beginning of a public hearing.
“This request impacts us in an insane manner,” said John Davis, mayor of Swansboro in eastern North Carolina. He noted proposed rate hikes of 99.4% in nearby beach communities would be impossible for some property owners to afford.
The increase should be rejected even if it is a negotiating ploy to get a rate increase of 10% to 20%, he said.
The region is populated by a large number of people on fixed incomes and those living below the poverty line who would not be able to pay such an increase, Davis said.
The proposal is “outrageous,” said Swansboro Chamber of Commerce Executive Director Mike McHugh.”If this increase were to become reality, it would be devastating.”
McHugh said he found it difficult to believe the nation’s major property insurance companies need to increase rates that much, pointing to executive salaries.
Natasha Marcus, a Democrat running for the insurance commissioner’s seat, criticized Causey for not attending the meeting in person.
“People come from all over the state to be here, he should be here too,” she said.
Marcus also condemned the rate hikes and said Causey should reject the proposal and order a public hearing with all parties under oath and Causey presiding. The result should be a fair, vibrant and affordable homeowners market, she said.
Speakers also testified during the first part of the hearing to the impact on local real estate markets and small businesses, while others criticized a lack of transparency and the models used to develop the rates.
The average increases range widely, from 4.3% in Haywood, Madison, Swain and Transylvania counties to 99.4% in beach areas of Brunswick, Carteret, New Hanover, Onslow and Pender counties, according to the bureau.
Homeowners insurers in North Carolina have not requested a rate change since 2021, when they agreed to a 7.9% rate increase, negotiated down from their initial request of 24.5%.
Emailed and written comments also will be accepted at the department through Feb. 2.
If the department disagrees with the bureau’s request, the rates will be denied or negotiated with the bureau. If a settlement cannot be reached within 50 days, the commissioner will call for a hearing, the department said.
The top five writers of homeowners multiperil insurance in 2022 in North Carolina, based on direct premiums written, were: State Farm Group, with 16.09% market share; North Carolina Farm Bureau Insurance Group, 12.27%; USAA Group, 9.7%; Nationwide Property & Casualty Group, 7.52%; and Allstate Insurance Group, 6.49%, according to BestLink.