CT| Connecticut’s Insurance Department has updated its guidance on “Flex-Rate Filings” for voluntary market personal risk policies, effective June 30, 2025, under Public Act No. 25-86. Bulletin PC-92-25 allows insurers to implement rate changes for existing personal lines (e.g., homeowners and private passenger auto, excluding residual market business) immediately upon filing, provided the overall statewide rate change does not exceed a 6% increase or decrease in the aggregate, and no individual territory experiences more than a 15% increase within a 12-month period. Importantly, each insurer—even within a group—must independently comply with these limits, and changes involving new rating plans or significant modeling methodologies do not qualify for flex-rate treatment unless adopting plans already approved for other insurers. Insurers must clearly identify flex-rate filings in their submissions, provide detailed rate impact exhibits by territory, and ensure that only one flex-rate filing is made per 12-month period unless combined cumulative changes stay within the statutory limits; however, filings outside these parameters remain subject to standard regulatory review. Changes to existing policies must be applied at renewal with proper advance notice to policyholders.
Main Points:
- Immediate Implementation Within Limits: Insurers can implement rate changes for personal risk policies without prior approval, provided the statewide change is within ±6% and no single territory exceeds a 15% increase within 12 months; each insurer, including those within groups, must independently comply.
- Scope and Exclusions: Flex-rate provisions apply only to revisions of existing programs (not initial filings) and do not cover changes to rating plans, class/territory definitions, or new modeling methods unless adopting already approved plans.
- Filing and Compliance Requirements: Insurers must clearly mark flex-rate filings, provide detailed territorial rate impact data, and may make only one such filing per year unless cumulative changes remain within statutory limits; all changes to existing policies require advance notice at renewal.
