Rate Changes for Hartford, Bankers Standard and American Strategic Home Insurance Companies in Connecticut for 2017-2018

This news articles summarizes the homeowners insurance rate filings proposed and approved in Connecticut in October 2017 for The Hartford, American Strategic and Bankers. Click to read more.

Two of the largest home insurers in Connecticut have filed for rate changes this month. The companies include Bankers, which is part of the Chubb Insurance family, and branches of Hartford. Another company, American Strategic, has also filed for policy changes. In total, five of these home insurers have pending filings: Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Insurance Company of the Southeast, Trumball Insurance Company, and American Strategic Insurance Corporation.

All rate changes would take effect for 2017-2018 if accepted. Only one company, Bankers Standard Insurance Company, has been approved by the state so far.

Average rate increase of 4.1% pending for The Hartford in Connecticut

The Hartford has filed for a rate increase that averages 4.1% across their homeowners insurance policyholders in four affiliate companies in Connecticut. All rate changes are proposed for Hartford's Home Advantage program. Each company has a different minimum and maximum increase, as well as number of policyholders affected as displayed below.

CompanyOverall Rate Impact (%)Affected PolicyholdersMin Change (%)Max Change (%)
Hartford Accident and Indemnity Co4.13305-4.214.5
Hartford Casualty Insurance Co4.1907-2.914.7
Hartford Insurance Co of the Southeast4.16326-2.914.8
Trumbull Insurance Co4.116007-2.914.7

The majority of policies in scope would be clustered around the 0 - 4.9% range, as outlined below.

Impact (%)

Number of Policies
-20% to 15.1%62
-15% to -10.1%250
-10% to -5.1%1,158
-5% to -0.1%5,550
0% to 4.9%10,955
5% to 9.9%4,169
10% to 14.9%2,517
15% to 19.9%1,251
20% to 24.9%361
25% to 29.9% 144
30% to 34.9%53

Bankers Standard approved for 10.2% overall impact

Bankers has filed for a rate increase averaging 10.2% for its policyholders. The proposal was accepted by the state of Connecticut. The maximum increase possible for some customers will be around 37.4%. But, some policyholders will instead see a decrease of 2.5%.

Among the approved changes is a new claim surcharge, which will affect the average home insurance rate. In the filing it's stated that, "a claim surcharge shall be applied to each location based on the dwelling amount or Personal Property and Additions & Alterations amount and the number of non-catastrophe claims paid by us [Bankers] to an insured or on behalf of an insured within the last 3 years." For example, if a house with a dwelling value of less than $2 million has a claim of $500 or greater, then the new surcharge would be 10%. Two or more claims for the same house would rise to 20% or higher.

Bankers also has announced that it is no longer taking new business. By reducing the loyalty discount, the company will not have to make as big of a base rate increase.

American Strategic requests 6.0% homeowners insurance rate increase

9,707 American Strategic policyholders may see a 6.0% increase on average if the company’s rate filing is approved by regulators. However, some policyholders may have a smaller increase of 1.2%. Other policyholders may see a larger increase than the average, with the highest possible increase being around 9.9%.

The company has included a listing of the cities and how the rate changes will affect each city on average. Below are tables detailing the three most impacted and three least impacted cities.

Most Impacted CityRate Change (%)
Least Impacted CityRate Change (%)
Lords Point2.6%

Rate changes for Connecticut's top companies in 2017

Of the companies listed above, Hartford and Chubb are on the list of the top 12 companies in Connecticut. Chubb ranks second in the state with $164,200,000 direct written premiums. Hartford ranks ninth with $58,000,000 direct written premiums.

So far this year, seven of the top 12 companies for home insurance in Connecticut have been approved for rate changes. However, the rate increases have been miniscule. Farmers Insurance Group has the largest increase with 10.4% on average.

Katherine Ross

Katherine is a former Editorial Associate at ValuePenguin.

Comments and Questions