The Connecticut Insurance Department has issued Bulletin PC-92-25 to clarify and update the rules for personal-lines insurance rate filings under the state’s flex-rate filing provisions.
What is flex rating?
Flex rating allows insurers to adjust rates for personal lines insurance without prior approval from the CID, as long as the changes meet certain thresholds, which are:
- the overall statewide rate change must not exceed +6% or -6%, and
- no more than a 15% increase can occur in any one territory for any filing within a 12-month period.
These provisions are designed to provide rate-setting flexibility while maintaining regulatory oversight and consumer protections. The limits apply individually to each insurer, even within a group, and insurers cannot average rates across their group to remain within the thresholds.
Key things to know
Limits apply to filings, not individuals. The flex-filing limits apply at the filing level—not on a per-policy basis. Individual insureds still may see increases above 15%.
Annual filing limit. One flex-rate filing is allowed per insurer every 12 months unless all filings (including non-flex) stay within cumulative limits.
CID review. While flex-rate filings take effect upon submission, the CID still reviews them for compliance. The department can issue a corrective order if a rate is deemed unfairly discriminatory or inadequate.
What’s excluded?
Changes to rating plans—such as class or territory definitions, rating rules or the use of new modeling methods (e.g., generalized linear models)—generally are not eligible for flex rating, unless the plan has been approved previously for use by another licensed insurer.
What agents need to know
While the bulletin doesn’t significantly affect day-to-day operations, it provides clarity on how rate changes are implemented. You should be aware of these procedures in case clients ask about premium increases.
Insurers still must provide policyholders with advance notice of any increases, per Conn. Gen. Stat. Section 38a-323, and the CID continues to monitor filings.
Effective date and legislative background
This updated guidance applies to filings submitted on or after June 30, 2025. It reflects changes enacted by Public Act No. 25-86, which extends the flex-rating statute under Conn. Gen. Stat. Section 38a-688a through July 1, 2030.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
