How does Connecticut regulate insurance premium rate increases?

In Connecticut, insurers are required to obtain approval from the Insurance Department before implementing any increases in insurance premium rates. This regulatory framework is designed to protect consumers by ensuring that rate increases are justified and not arbitrary. The Insurance Department reviews proposed rate changes based on actuarial standards and market conditions to determine if they are fair and adequate, promoting regulatory oversight in the insurance industry.

This approach ensures that the interests of policyholders are taken into account and that rates reflect the actual risks associated with the insurance coverage. It plays a critical role in maintaining consumer confidence in the insurance market by preventing unexpected or excessively high increases that could burden policyholders.