When do changes in Property and Casualty rates require prior approval?

In South Carolina, changes in Property and Casualty rates require prior approval when the increase is 7% or greater. This regulation is designed to protect consumers from significant rate hikes that could impact their insurance affordability and access. By requiring prior approval for substantial increases, the regulatory body aims to ensure that rate adjustments are justified, taking into consideration the underlying costs of providing insurance and competitive market conditions. This helps maintain a balance between the sustainability of insurers and the protection of policyholders.

The threshold of 7% is significant as it highlights the state's focus on substantial changes rather than minor adjustments that wouldn't likely have a drastic effect on consumers. Minor adjustments, which may fall below this threshold, typically do not require such scrutiny, allowing insurers some flexibility in managing their rates.