Homeowners’ Insurance Rate Filings Face Delays and Lower Approvals Nationwide

A recent Insurance Research Council (IRC) report reveals increasing inefficiencies in the homeowners’ insurance rate filing process, which directly impacts insurers’ ability to manage risk and maintain profitability. By analyzing data from 2010 to 2024 across all U.S. states and Washington, D.C., the study details growing delays, lower approval rates, and a rising gap between requested and granted premium increases.

Claims adjusters and underwriting professionals will note that the average approval time has grown from 44 to 63 days, while the percentage of filings approved at reduced levels has increased by more than 10 percentage points. Additionally, the residual market share and usage of the excess and surplus market have grown rapidly, signaling deteriorating accessibility to standard homeowners’ policies in states like California.

California stands out with some of the slowest rate approvals and a sharp increase in residual market reliance—up from 2.1% in 2019 to 8.2% in 2024. Such trends reflect regulatory bottlenecks and have downstream effects on claims handling, especially when non-admitted or residual market carriers are involved.

The findings underscore how rate filing inefficiencies contribute to persistent underwriting losses. The study found a strong correlation between premium shortfalls and underwriting losses, revealing structural misalignments that claims professionals must be aware of, particularly when navigating coverage limits and policyholder expectations in underpriced markets.

This report is essential reading for professionals navigating pricing adequacy, regulatory constraints, and shifting market dynamics. For adjusters, understanding where standard coverage is shrinking can help anticipate claim complexity and identify potential jurisdictional issues tied to surplus lines and residual market plans.