The Massachusetts Senate just passed a legislative amendment that would allow home insurers’ rate filings to be disclosed to the public.
Massachusetts State Senator Mike Barrett, D-
Lexington proposed the amendment, saying that it would benefit homeowners who have to wait until the state Division of Insurance approves the rate hikes to find out about them.
Barrett’s amendment would declare industry requests for home insurance rate increases as public records the moment they are filed and before the rate hikes are implemented.
The amendment also requires all industry fillings to be posted online within three business days to give consumers a more convenient way to view the rate changes.
“The state attorney general, interested legislators and concerned members of the public will get a timely look at new insurance rates. If any warrant additional study, we will now have a chance to do our due diligence,” said Barrett, describing how his amendment would introduce transparency.
The amendment was attached to S.B. 2127. The bill, passed Feb. 4, aims to establish faster timetables for state agencies to fulfil requests for public records. The bill also sets limits on fees for the requested public records.
The bill is set to appear in a legislative conference committee, where the Senate and the House can come up with a compromise between their versions of the bill.
Three of Massachusetts’ largest insurers raised their premiums last year following severe winter weather and the claims filed in its wake. Safety Insurance raised its rates by 9.1%, while Mapfre USA Corp. surged by 8.9%, and Bunker Hill Insurance by 7.7%. It did not take long for several smaller insurance companies to follow suit.
Barrett said that the rate increases were approved by the Division of Insurance without any involvement from the public, lawmakers, or consumer advocates.
The average annual hike in homeowner’s insurance rates in Massachusetts is around 2 to 3%.
