Bulletin 2025-08 Notice for Tentative Credit Property Insurance Rates

South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 _________________________ Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 HENRY MCMASTER Governor MICHAEL WISE Director BULLETIN NUMBER 2025-08 TO: Insurers Writing Credit Property Insurance in South Carolina in Conjunction with Consumer Credit Transactions subject to 1966 S.C. Act No. 988, Consumer Finance Law FROM: Michael Wise Director SUBJECT: Notice of Tentative 2026 Credit Property Insurance Rates and Opportunity to Request a Hearing DATE: August 8, 2025 I. NOTICE OF TENTATIVE CREDIT PROPERTY INSURANCE RATES Regulation 69-11.1, Regulation of Credit Insurance, requires the South Carolina Department of Insurance to promulgate tentative rates for credit property insurance by August 1 of each year. The tentative rates are those the Department believes may reasonably be expected to produce a loss ratio of not less than fifty percent (50%) in the following calendar year. This bulletin constitutes official notice of the tentative rates for 2026. The Department has reviewed past loss experience for credit property insurance written in conjunction with consumer credit transactions subject to the Consumer Finance Law. The aggregate 2024 loss ratio at prima facie rates was twenty-two and eight tenths percent (22.8%). The aggregate 2023 loss ratio at prima facie rates was nineteen and nine tenths percent (19.9%). Generally, it appears that previous rate decreases are not consistently causing increases to the aggregate loss ratio, and year-to-year fluctuations occur. Since there is a statutory minimum premium of $3, we will continue to monitor the results to ensure that further reductions in rates will effectively increase the aggregate loss ratio. The average loss ratios from 2005 to 2024 by coverage are as follows: Coverage Loss Ratio Automobile, Fire and Theft – Single Interest 42.7 percent Automobile Collision – Single Interest 42.7 percent Household Goods – Single Interest 77.3 percent Household Goods – Dual Interest 5.0 percent We propose to hold the rate for Household Goods – Single Interest coverage at the 2025 level and to decrease the other rates ten percent from their current levels. The tentative rates expressed as a percentage of the total amount of the loan are as follows: Coverage Tentative Rate Automobile, Fire and Theft – Single Interest 0.45 percent Automobile Collision – Single Interest 1.67 percent Household Goods – Single Interest 5.81 percent Household Goods – Dual Interest 0.50 percent Based on premiums earned in 2024, the overall impact resulting from these tentative rates would be a decrease of nine percent (-9.0%). II. OPPORTUNITY FOR A HEARING Regulation 69-11.1.C.(4) provides that “every insurer which feels aggrieved by any of the rates so promulgated shall have fifteen days to request a public hearing with respect to such rate or rates.” Accordingly, all requests for a hearing must be submitted to the Department in writing on or before August 23, 2025. Please direct any requests for a hearing to the attention of: Gwendolyn McGriff South Carolina Department of Insurance Post Office Box 100105 Columbia, South Carolina 29202-3105 All requests must include documentation supporting your position that the tentative rates for credit property insurance need to be changed. After any requested hearings have been held, the final rate or an affirmation of the tentative rate shall be sent to all companies on or about October 1, 2025. III. QUESTIONS Any questions or concerns about this Bulletin should be submitted in writing to the attention of: Will Davis, FCAS, MAAA South Carolina Department of Insurance 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 Facsimile: (803) 737-6145 E-mail: WDavis@doi.sc.gov