Property-casualty industry representatives are expressing concern about mandated auto premium reductions in North Carolina.
Earlier this month, Commissioner Jim Long signed an order requiring a 2.5 percent reduction in private passenger auto rates and a 6 percent reduction in motorcycle liability rates, effective May 15.
David Reddick, senior state affairs manager for the National Association of Mutual Insurance Companies, said the reduction “continues to make North Carolina a tough state for auto insurers to manage their risks and get any return on investment.”
“It is unfortunate that one individual is keeping companies from operating in a more competitive marketplace,” Mr. Reddick said.
The rate reduction came after a lengthy hearing that started in September of last year and ended last month.
Mr. Long said that in his 21 years as commissioner he has fought to keep auto rates low and has saved drivers nearly $4.2 billion in potential premiums, holding his state to the fifth lowest in auto rates in the country.