Senate Finance hears DFR briefing on rising insurance costs, flood impacts and proposed fixes

Montpelier — On Jan. 17 the Vermont Senate Committee on Finance received a wide-ranging briefing from the Department of Financial Regulation on the state’s insurance markets, including property and casualty, life and long‑term care coverage, and the major‑medical health market that serves individuals and employer groups.

Deputy Commissioner of Insurance Emily Brown told the committee the department’s mission is “to assure the solvency, liquidity, stability, and efficiency of all such organizations offering financial services,” and outlined how national catastrophes and reinsurance costs are driving premium increases that reach Vermont policyholders.

Why it matters: Premium and coverage problems in property, auto and health insurance affect large numbers of households and employers and interact with hospital finances, flood recovery and state budgets. Brown said the department is pursuing regulatory and legislative steps intended to ensure rates are supported by local data and to limit unfair underwriting practices that could penalize housing providers serving people in need.

Property and casualty

Brown said Vermont’s homeowners and auto premiums remain relatively low by national measures but are increasing. Citing National Association of Insurance Commissioners (NAIC) data, she said Vermont homeowners’ premiums rank among the lower end nationally and auto premiums were near the low end as well. She said inflation, higher labor and materials costs, and rising reinsurance prices (the insurance that insurers buy to protect themselves against large losses) are raising costs for insurers and, ultimately, policyholders.

The department carried out a 2023 flood data call to see how insurers handled flood claims after recent high‑water…