Senate panel to look into the rate at which homeowners insurance premiums are growing
Homeowners in Massachusetts have been reeling from major insurance hikes in recent years. Many insurers have been raising rates by significant margins due to record snowfall over the past winter. Homeowners have expressed their concerns regarding the rate increases, which have placed them under a greater degree of financial stress. Now, state lawmakers are looking into the issue to determine whether or not the rate increases are necessary.
Panel will be interviewing insurance professionals and regulators
The state Senate has launched an investigation into the matter, which is being led by the Senate Post Audit and Oversight Committee. The panel is being headed by Senator Michael Barrett, who notes that lawmakers will be examining the state’s rate review process to ensure that it is as fair as possible for consumers and insurers alike. Homeowners insurance providers will be providing information concerning their rate increases and state regulators will be offering further insight into the rate review process.
Heavy snowfall pushes homeowners to increase premiums
Mapfre USA, one of the state’s largest homeowners insurance providers, received approval to increase rates by 8.9%, but other insurers have sought rate increases that go beyond that. For homeowners, these rate increases have become problematic, but insurers are adamant that the increases are necessary. Over the past winter, insurers saw a great deal of financial losses due to heavy snowfall and other natural catastrophes. In order to recover from these losses, insurers have had to increase premiums.
Rate review process may be changed depending on the findings of the panel
The panel may find it necessary to make changes to the rate review process, but it may be some time before such changes are made. The panel will be questioning insurance professionals and regulators alike in order to determine what action to take. If the rate review process is changed, homeowners may see some financial relief in the future. Changing the rate review process will not prevent insurers from raising rates, but they may find it more difficult to do so.