Emergency Order Impacts all Washington State Insurance Policy Holders!
On March 23rd, our WA Insurance Commissioner (OIC), Mike Kreidler, issued a 120-day, temporary emergency order, prohibiting all insurance companies from using credit scoring as a rating factor for insurance premiums. Beginning June 20th, to continue doing business in Washington State, the order mandates all insurance companies to file a neutral rating in place of an individually tiered score by May 6th. Our carriers are working as quickly as possible to meet this demand to remain in compliance and to reduce the anticipated impact.
How will this order impact you?
Credit scores are one factor of many, insurance carriers use to formulate their “insurance score,” which correlates with forecasting claims and subsequently how they establish premium rates.
- If you are not in Washington State and don’t retain any WA policies, then this order will not impact you.
- If you have WA policies, this order will not impact you until your renewal processes.
- If your rates remain the same and/or decrease, then this order is a non-issue for you.
- If your policies are up for renewal & rates increase, then clients with average to excellent credit scores will see an increase in premium, some anticipated to be as high as 80%
What Can You Do?
Since the emergency order is temporary, our advice is to remain with your current insurance carrier until a longer term decision is reached.
Short term gain will likely mean long-term pain. There are many reasons to remain with your current carrier, but the largest reason is that changing carriers will negatively impact any savings earned from insurance history. Insurance history is very valuable and should be preserved as much as reasonably possible. Additionally, switching carriers may require a new home inspection, subsequent home updates, current jewelry appraisals, adjustments to your escrow account etc. Learn more about “Short Term Solutions” (1:09 min)
What is Rice Insurance doing?
As an insurance broker, we do not set rates, but we do advocate for our clients. There are ways we can help you navigate this order and save. Additional staff will be hired, and our processes adjusted to ensure we can assist as many clients per day as possible. We are working closely with our appointed insurance companies to understand the specific impact to our mutual clients and will continue to share updates as more information becomes available.
Your Voice Matters
Make your voice heard. If you have been impacted by this emergency order, the Coalition For Fair Insurance invites you to click here and share your story with your elected officials.
“The Coalition for Fair Insurance works to protect consumers, businesses and communities by advocating for fairly priced, affordable insurance rates.”
We appreciate your business and partnership, and we are committed to working together to navigate this unprecedented impact to our industry and all of us living in Washington State.
Media Contact: Sandie Mathewson – Partner, Director of Operations & HR