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<\/p>\nFlorida\u2019s insurance commissioner in early August noted that rate increases by property-casualty insurers in the state have slowed significantly since 2023 legislative reforms were enacted, with 12 carriers asking for a small decrease this year and another two dozen filing for a zero rate increase.<\/p>\n
RLI Insurance, a specialty insurer serving niche markets, does not appear to be following that trend. The Illinois-based carrier, licensed in Florida since 1975, will raise rates on personal umbrella policies, including uninsured motorists\u2019 coverage, by an average of 16%, starting Sept. 1, a use-and-file rate filing with OIR shows.<\/p>\n
More than 57,000 policies may be affected.<\/p>\n
The increase is on top of a 24% increase that was approved and took effect in January, which means that new or renewal policies with a start date after September will see both increases, the RLI administrator for Florida, Charlie Hampton, said in a Florida Association of Insurance Agents\u2019 blog post this week.<\/p>\n
\u201cI\u2019m sure they (agents) wont love it but they will understand in this market,\u201d she said in an email Friday.<\/p>\n
RLI also was approved for a 13.8% increase in June 2023.<\/p>\n
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Officials with the publicly traded RLI could not be reached for comment Friday morning.<\/p>\n
The company, which began as a contact-lens insurer in 1965, has continued its profitability in recent years. RLI\u2019s second-quarter earnings report shows almost $82 million in net income, up slightly from Q2 2023. Its combined ratio, a measure of profitability, stood at a startlingly low 81.5, a slight improvement over the previous year and far below the industry average.<\/p>\n
RLI\u2019s stock price last week and this week rose to an all-time high of $154 per share, Investing.com and Yahoo!Finance reported.<\/p>\n
While Florida regulators have touted recent rate moderation, RLI is not alone in filing for double-digit increases this year as the Florida market recovers from what insurers have called extreme litigation costs \u2014 before new statutes took effect in 2022 and 2023.<\/p>\n
Other carriers include People\u2019s Trust Insurance, which has requested a 14.8% increase on dwelling fire policies; First Protective Insurance, which has asked for a 14.7% increase on homeowners; and Cypress Property & Casualty Insurance, which was approved for an 18.7% hike on homeowners policies. Citizens Property Insurance Corp. also has requested a 14% average rate increase, the maximum allowed by the corporation\u2019s statutory glide path.<\/p>\n
So, it\u2019s not certain that RLI\u2019s latest filing will be approved. At a rate hearing in June, OIR officials repeatedly grilled a People\u2019s Trust executive over the company\u2019s HO rate increase, coming on the heels of another increase in 2023, Lisa Miller & Associates has reported.<\/p>\n
Topics<\/span> Florida<\/a> Pricing Trends<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n