As seen at Insurance Journal:
The Massachusetts FAIR Plan has requested a 25 percent homeowners insurance rate increase for Cape Cod residents, part of an overall statewide filing seeking a 13.6 percent average rate increase statewide.[...]
Massachusetts Attorney General Martha Coakley expressed concern regarding the 25 percent rate increase for Cape Cod, which if approved would be the second year in a row rates have risen on these coastal properties by 25 percent.
Coakley’s office is still pursuing an appeal of last year’s decision, begun by her predecessor Tom Reilly, which granted the FAIR plan a 12.4 percent statewide hike and 25 percent on the Cape.
Well, if rates were woefully inadequate to begin with, but the powers that be sought to reduce market disruption by phasing in a shift to adequacy, back-to-back hikes makes mathematical sense.
At least we don’t have to worry about a Florida strategy being attempted in Massachusetts. Somehow, I don’t think a threat of “you aren’t allowed to write auto unless you also write homeowners” will work all that well in the Bay State.