The last adjustment to this program was approved in October 2021 (Item Key #829138) and resulted in an overall rate increase of +6.8% to be effective February 1, 2022 for both new and renewal business.
Louisiana Citizens Property Insurance Corporiation (LCPIC) states "The law requires that the Company file a rate change with a proposed effective date within 12 months of our last rate change. Our last regular rate change was effective 2/1/2022. The current rate change proposed effective date is 11/1/2022. This rate filing is being made earlier than the normal annual February 1st effective date due to the significant increase to the net cost of reinsurance which can be seen within the commercial rate indication exhibits. The Louisiana Citizens Property Insurance Corporation board of directors voted on July 14, 2022 to file a proposed rate change of +72.4% for commercial property".
All underlying rating factors will be derived from the 2020 ISO/PIAL Commercial Lines Manual (Filing Number CF-2019-RLA2) with the exception of the following adjustments to the base rates:
Fair Plan
- All Group I base loss costs in the manual shall be multiplied by 9.420 for all Fair plan policies.
- All Group II base loss costs in the manual shall be multiplied by 3.346 for all Fair plan policies.
Coastal Plan
- All Group I base loss costs in the manual shall be multiplied by 11.452 for all Coastal plan policies.
- All Group II base loss costs in the manual shall be multiplied by 5.157 for all Coastal plan policies.
This will result in an overall rate increase of +72.410% or +$27,298,570 (3,800 policyholders).