Baffled by the OIR’s move here since Citizens’ really needs as much rate as possible to return to it’s original purpose as a Residual market. This seems like a lot of hand-wringing only to likely reduce the rate request from 12% to 11.9% or 11.8%. I understand the need for as much support for an increase as possible given the current economic environment, affordability concerns, and the ensuing political pressures – but these don’t take away from the fact that Citizens needs a lot more rate to become a residual market again.
tl;dr – less rate for Citizens will lead to less Insureds returning to the private market. This decrease will affect when private market starts softening cycle.
Baffled by the OIR’s move here since Citizens’ really needs as much rate as possible to return to it’s original purpose as a Residual market. This seems like a lot of hand-wringing only to likely reduce the rate request from 12% to 11.9% or 11.8%. I understand the need for as much support for an increase as possible given the current economic environment, affordability concerns, and the ensuing political pressures – but these don’t take away from the fact that Citizens needs a lot more rate to become a residual market again.
tl;dr – less rate for Citizens will lead to less Insureds returning to the private market. This decrease will affect when private market starts softening cycle.
Agreed! They will probably come back with 11.94% and the OIR will see that as a victory.