Tuesday, 22 April 2008
California Insurance Commissioner Wants To Change Industry Regulations
Steve Poizner, California’s Insurance Commissioner, is proposing regulations that would require insurance companies to report premium trends over the previous six years, wrote the Los Angeles Times.
The proposal would change a current rule that requires carriers to report premiums in the last three years.
If implemented, the new rules would juggle the formulas that companies use to set insurance premiums — which would result in lower rates for policyholders, promises Poizner. The rules would affect homeowners and auto insurance.
Not everyone thinks the changes will help lower premiums. One consumer advocate contends that having more extensive premium trend reports could actually hurt policyholders. With more data, insurance companies could argue for premium increases.
The new rules don’t require approval from state Legislature — they only need to the go-ahead from California’s Office of Administrative Law.
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