North Carolina's Upcoming Hearing on Insurance Rate Increase: What to Know

North Carolina's insurance industry is poised for a significant regulatory event as Insurance Commissioner Mike Causey has slated a hearing for May 4, 2026. This session will assess a proposed rate adjustment submitted by the North Carolina Rate Bureau, which seeks an average 68.3% increase in dwelling insurance rates. This request, filed in October 2025, affects fire and extended coverage policies for non-owner-occupied properties, such as rental and investment properties with up to four units.

The Department of Insurance challenges this proposed hike, deeming it excessive according to regulatory compliance requirements. Consequently, they have planned a formal hearing at 10 a.m. in Raleigh to evaluate these concerns, unless a pre-hearing settlement is reached. This event highlights the ongoing negotiation between market demands and regulatory oversight within the insurance industry.

State law mandates that if the hearing proceeds, the Insurance Commissioner has 45 days post-conclusion to render a final decision. Should the Rate Bureau object to the findings, an appeal can be filed, initially with the North Carolina Court of Appeals and potentially with the N.C. Supreme Court. Previous negotiations suggest room for settlement, as seen with the Rate Bureau's 2023 request for a 50.6% increase, which ultimately resulted in a more moderate 8% raise, effective November 2024.

Impact on Future Rate Proposals

For industry professionals, this hearing illustrates the intricate interplay between regulatory processes and market dynamics, particularly with AI-driven prior authorization delays and risk management in underwriting. The decision will likely shape future rate settings, embodying the balance between rigorous market analysis and consumer protection in North Carolina's insurance sector.