2015 Profit and Contingency Factors

Page 1 of 1 INFORMATIONAL MEMORANDUM OIR-16-04M ISSUED June 7, 2016 Florida Office of Insurance Regulation David Altmaier, Commissioner TO ALL PROPERTY AND CASUALTY INSURERS AUTHORIZED TO DO BUSINESS IN FLORIDA 2015 PROFIT AND CONTINGENCY FACTORS Pursuant to Rule 69O-170.003, Florida Administrative Code, the Office of Insurance Regulation annually establishes underwriting profit and contingency factors that may be used in rate filings. Insurers may use the profit and contingency factors referenced below when they are unable to produce credible profit and contingency factors from their own data. LINE OF BUSINESS 2015 FACTOR ALLIED LINES 3.6% BOILER & MACHINERY 1.9% BURGLARY & THEFT 3.9% COMMERCIAL AUTO LIABILITY 0.0% COMMERCIAL AUTO PHYSICAL DAMAGE 4.8% COMMERCIAL MULTIPLE PERIL (BUSINESS OWNERS) 1.2% CREDIT 3.8% EARTHQUAKE 3.5% FARMOWNERS 4.0% FIDELITY 1.9% FINANCIAL GUARANTY 5.0% FIRE 3.6% HOMEOWNERS 4.0% INLAND MARINE 3.6% MEDICAL MALPRACTICE - CLAIMS MADE -3.9% MEDICAL MALPRACTICE - OCCURRENCE -11.0% MORTGAGE GUARANTY 0.2% OTHER LIABILITY - CLAIMS MADE -4.1% OTHER LIABILITY - OCCURRENCE -5.8% PRODUCTS LIABILITY - CLAIMS MADE -4.9% PRODUCTS LIABILITY - OCCURRENCE -9.5% SURETY 3.0% If you have questions regarding this memorandum, please contact Joe Boor, Actuary, Property and Casualty Product Review, Florida Office of Insurance Regulation at Joe.Boor@floir.com or (850) 413-5330.