Washington will require insurers to reveal reasons for rate hikes

Insurers will soon have to provide customers a clear explanation for increases in their auto and home insurance premiums at the time of renewal.

Beginning Saturday, companies must do so in writing if a policyholder requests it. In 2027, that information must be provided automatically and in easy-to-understand language on policy renewal notices.

“If your insurance company is going to increase your premium, you have a right to know why,” Insurance Commissioner Mike Kreidler said in a statement. “Hundreds of consumers, every year, have told us they are unable to get a clear answer from their insurance company about why they’re being charged more..”

Kreidler cited the volume of consumer complaints when he began this effort in February 2022. The lack of clarity can impede policyholders’ ability to decide on whether to renew or change insurers. Disclosing reasons for an increase will promote honesty and fairness in transactions, he has said.

https://washingtonstatestandard.com/2024/05/29/washington-will-require-insurers-to-reveal-reasons-for-rate-hikes/