Benzinga | Aug 4, 2020 08:34AM EDT

HCI Group Insurance Subsidiaries Plan Rate Increases As Offset For Rising Insurance Costs

TAMPA, Fla., Aug. 04, 2020 (GLOBE NEWSWIRE) -- The insurance subsidiaries of HCI Group, Inc. (NYSE:HCI) plan rate increases to offset, in part, increased reinsurance costs.



HCI's largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., has asked state insurance regulators and received approval for a 6.9% rate increase for its homeowners' and condominium insurance products. The rate increase will take effect October 1, 2020. Additionally, Homeowners Choice plans to apply for a 5-7% rate increase for both its dwelling and fire policies, and wind-only policies, subject to final negotiations with regulators.

HCI's InsurTech operation, TypTap Insurance Company, implemented a 20% increase for its flood insurance product on July 15, 2020. TypTap has also applied for a 12-14% rate increase for its homeowners' insurance product. If approved, this rate increase would be expected to go into effect before the end of the year.

"Increased reinsurance costs, by far our largest cost, have forced us reluctantly to seek rate increases," said HCI Group Chief Executive Officer Paresh Patel.