OLYMPIA — Insurance Commissioner Mike Kreidler wants authority to limit the amount of surpluses insurance companies can amass when considering their requested rate hikes.
He’ll ask the Legislature for the authority to take those surpluses into account, and deny rate hikes of an insurance company had surpluses that totaled more than three months worth of claims expenses.
Under current law, surpluses, which include investment income, can’t be considered when deciding a request for a rate increase, Kreidler said in a press release today. “Some non-profit insurers have built up hundreds of millions of dollars in surpluses in recent years, while still seeking double-digit rate hikes.”
He also wants the law changed to let the public see what percentage of a rate request goes to profit, to medical costs and to administrative costs.