Washington Insurance Commissioner Mike Kreidler is considering postponing the implementation of phase two of the state’s new premium change transparency rule for auto and home insurance from June 2027 to June 2029. The decision aims to gather more data on phase one and address industry concerns about costs and operational impact.
The rule, adopted last year, began with phase one in June. It requires insurers to disclose the reason for a premium increase within 20 days if requested by policyholders.
Companies must also notify consumers of their right to request details about any premium hike through disclaimers in renewal or billing notices.
Phase two demands more proactive communication. Insurers must notify policyholders at least 20 days before renewing a policy that has a 10% or higher premium increase.
The notice must explain the increase and highlight its main reasons, covering factors like claims history, base rate changes, and demographic data.
Auto insurance factors may include garage location and miles driven, while home insurance considerations could involve property age and value.
Industry groups argue that the second phase’s detailed disclosure requirements could cost hundreds of millions, further straining premiums.
Organizations like the American Property Casualty Insurance Association and the National Association of Mutual Insurance Companies emphasize that phase one already provides consumers with necessary information. They argue phase two’s extra demands could overwhelm insurers without meaningful benefits for policyholders.
Kreidler stated that the transparency rule is essential for both consumers and insurers.
The department’s assessment includes a data call to analyze phase one’s impact, which will inform phase two’s future.
Mike Kreidler, Washington Insurance Commissioner
Industry representatives appreciate the commissioner’s willingness to evaluate phase one before advancing, suggesting improvements that could benefit all parties involved.
In 2023, Washington’s largest homeowners multiperil insurance providers by market share were State Farm (16.13%), Liberty Mutual (14.08%), Farmers Insurance (11.99%), Allstate (11%), and USAA (9.11%).
Commissioner Mike Kreidler has served the people of Washington in elected offices and appointed posts for more than 30 years. Born and raised around Tacoma, he has represented our state with dedication, while also managing a professional career in optometry.
Kreidler has distinguished himself through his work on health care and the environment to insurance. He was elected Washington State’s eighth Insurance Commissioner in November 2000. Voters returned him to office in 2004, 2008, 2012, 2016 and 2020.
As Insurance Commissioner, Kreidler is responsible for regulating Washington’s $30 bn insurance industry. He helped strengthen the market to give consumers more options while cutting excessive rate increases by insurers to save consumers over $310 mn.
