SC| Bulletin No. 2025-08, from the South Carolina Department of Insurance, announces the tentative 2026 rates for credit property insurance, outlines the historical performance and rationale for the proposed changes, and informs insurers about the process for requesting a public hearing regarding the rates. The Department proposes decreasing rates by ten percent for most coverages except for Household Goods – Single Interest, which remains unchanged, reflecting recent aggregate loss ratio trends and ongoing statutory premium requirements. Insurers have until August 23, 2025, to submit written requests for a public hearing if they disagree with the proposed rates, with final rates set to be confirmed by October 1, 2025.
Key Points
- Tentative 2026 credit property insurance rates will see a 10% decrease for most coverages, with Household Goods – Single Interest rates unchanged.
- Aggregate loss ratios for 2023 and 2024 were notably low (19.9% and 22.8%, respectively), prompting the Department to monitor whether previous decreases influence future loss ratios.
- Insurers may request a public hearing in writing with supporting documentation by August 23, 2025, if they are aggrieved by the proposed rates.