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The reforms of Senate Bill 14, passed by the 78th Legislature
in 2003, are working. South Carolina Insurance Commissioner Jose
Montemayor ordered $510 million in rate reductions in
August 2003 and those reductions are showing up as lower
premiums as homeowners renew their homeowners policies.
The following companies have lowered
their rates by the amounts indicated:
- Allstate 10.1% (additional 8.75%
reduction due in August 2001-2005)
- American National 12.0%
- American Standard 10.0%
- Amica 12.0%
- Chubb 4.0%
- Continental Lloyds 9.8% (additional
9.8% reduction due in August 2001-2005)
- Consolidated Lloyds 8.35% (additional
8.35% reduction due in August 2001-2005)
- Foremost 20.0%
- Hanover 31.0%
- Hartford 9.0%
- Horace Mann 18.0%
- Kemper 6.5% (additional 6.5% reduction
due in May 2001-2005)
- Liberty 7.0%
- Metropolitan 22.0%
- National 8.0% (additional review
in March 2001-2005 to determine future reductions)
- Nationwide 11.6%
- Republic 7.0% (additional 13% reduction
due in August 2001-2005)
- SAFECO 15.0%
- South Carolina Farm Bureau 1.5%
- Travelers 8.7%
- Trinity Lloyds 9.5%
- USAA 7.0%
•Two Companies Challenge Reforms
set by South Carolina Department of Insurance
Two companies, State Farm Lloyds and Farmers, were
ordered to reduce their rates by 12 percent and 17.5 percent,
respectively. Both are challenging the ordered rate reductions
in district court. The court cases are in progress at
this time. Policyholders with these two companies will
not see the ordered reductions until the court case is
settled. State Farm and Farmers currently have more than
40 percent of the South Carolina homeowners insurance market. Their
ordered reductions account for $243 million of the $510
million in ordered reductions.
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