Florida Office of Insurance Regulation: Personal Injury Protection (PIP) Premiums Going Down for Most Florida Drivers
Jan 22, 2014
The Florida Office of Insurance Regulation (“OIR”) released a preliminary analysis of rates submitted by the top 20 automobile insurance companies writing Personal Injury Protection (“PIP”) insurance in Florida today, January 22, 2014. These companies’ business equates to more than 75 percent of the Florida market, according to OIR data.
The analysis, which was compiled to demonstrate the cumulative effect of 2012 PIP reform (House Bill 119), shows an estimated average statewide savings in PIP premiums of 13.2 percent since the first required rate filing was due in October of 2012, pursuant to the new law. The second was due on January 1, 2014. HB 119’s anticipated cumulative effect of these two filings was a 25 percent overall decrease in PIP rates. Most insurers calculated their rates using a “Pinnacle study,” which projected that reforms contained in HB 119 would generate PIP premium savings ranging from 14 percent to 24.6 percent.
The OIR explains that PIP insurance accounts for about 25 percent of a consumer’s total auto insurance premium cost; therefore, a statewide average decrease of 13.2 percent in PIP is expected to result in an overall reduction of 3 to 4 percent for a policyholder, depending on the coverage purchased.
The estimated average statewide savings reflected a positive trend in comparison with 2011, when 86 percent of auto-related rate filings were for proposed increases in PIP premiums–the vast majority for double-digit increases. Auto insurers that did not decrease PIP premiums by the combined cumulative 25 percent were required to support and justify the reason(s) their respective savings should vary.
Based on the OIR’s analysis, all of the top 20 personal auto insurers accounted for and recognized the projected savings from HB 119 in PIP rates they filed.
The OIR’s chart provided below lists information on the top 20 auto insurers, along with each company’s cumulative total rate change for PIP. It also provides information on overall auto insurance rate changes for each company.
|
Company Name |
Total Private Passenger Auto (“PPA”) |
Cumulative Total Rate Change
|
Market Share |
|
|
PIP |
Overall Auto Premium |
|||
|
Geico General Insurance Co. |
$1,415,057,321.00 |
-25.0% |
0.6% |
10.3% |
|
Geico Indemnity Co. |
$665,542,498.00 |
-25.2% |
-5.0% |
4.8% |
|
Government Employees Insurance Co. |
$431,343,160.00 |
-25.0% |
0.6% |
3.1% |
|
State Farm Mutual Auto Insurance Co. |
$2,405,443,969.00 |
-1.7% |
-3.3% |
17.5% |
|
Allstate Fire and Casualty Insurance Co. |
$603,242,208.00 |
0.0% |
4.7% |
4.4% |
|
Allstate Insurance Co. |
$481,429,521.00 |
-21.4% |
-0.9% |
3.5% |
|
Allstate Property & Casualty Insurance Co. |
$304,129,898.00 |
-19.9% |
0.2% |
2.2% |
|
Esurance Property & Casualty Insurance Co. |
$159,240,449.00 |
20.9% |
17.0% |
1.2% |
|
Progressive American Insurance Co. |
$870,076,669.00 |
-32.3% |
-11.7% |
6.3% |
|
Progressive Select Insurance Co. |
$733,157,780.00 |
-34.6% |
-15.0% |
5.3% |
|
United Services Automobile Association |
$375,509,179.00 |
-25.0% |
0.9% |
2.7% |
|
USAA Casualty Insurance Company |
$269,997,218.00 |
-24.1% |
-3.3% |
2.0% |
|
21st Century Centennial Insurance Co. |
$263,167,411.00 |
58.1% |
26.9% |
1.9% |
|
Security National Insurance Company |
$197,420,501.00 |
-30.2% |
-7.4% |
1.4% |
|
Safeco Insurance Company of IL |
$190,891,579.00 |
17.7% |
19.2% |
1.4% |
|
Travelers Home & Marine Insurance Co. |
$254,362,163.00 |
13.9% |
13.5% |
1.9% |
|
Infinity Auto Insurance Company |
$210,224,818.00 |
-9.9% |
5.9% |
1.5% |
|
Direct General Insurance Company |
$195,256,514.00 |
-2.4% |
1.3% |
1.4% |
|
United Automobile Insurance Company |
$164,594,760.00 |
-7.7% |
-6.4% |
1.2% |
|
Metropolitan Casualty Insurance Co. |
$149,629,410.00 |
4.9% |
6.4% |
1.1% |
|
|
|
|
|
|
|
Total |
$10,339,717,026.00 |
|
|
|
|
|
|
|
|
|
|
Total 20 Companies Weighted Average |
|
-13.2% |
-1.2% |
|
|
Notes: |
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For more information on PIP-related issues, please visit the OIR’s “PIP Insurance (HB 119)” Web page at the following hyperlink: http://www.floir.com/Sections/PandC/ProductReview/PIPInfo.aspx
To access all PIP filings on the OIR’s I-File Forms & Rates Filing Search System, go to: http://www.floir.com/Office/FilingSearch.aspx.
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