SC| The South Carolina Department of Insurance has issued Order No. 2025-005 to set and approve rates for credit property insurance sold with loans under the Consumer Protection Code for 2026. After review, the Department found no objections to the proposed rates and approved a 10% rate decrease for most coverages, except Household Goods – Single Interest, which remains at the 2025 rate. The overall impact of these rates is a 9% premium decrease based on 2024 data, with a continuing statutory minimum premium of $3 and ongoing monitoring of loss ratios.
Key Points:
- Rates for most credit property insurance coverages will decrease by 10%, except for Household Goods – Single Interest, which will be held steady at 5.81% of the loan amount.
- The aggregate loss ratios for 2023 and 2024 were 19.9% and 22.8% respectively, showing stable loss experience without adverse impact from prior rate decreases.
- Insurers must submit annual statistical information and notify the Department by December 1 if they will use rates no higher than those promulgated in this order, which takes immediate effect.