PIACT supports transparency in premium billing notices legislation

PIACT has formally expressed its support for H.B.5373–An Act Concerning Premium Billing Notices for Personal Risk Insurance Policies. At a recent public hearing held by the Connecticut Insurance and Real Estate Committee, PIACT submitted testimony in support of the bill. 

This bill offers a sensible and fair solution for boosting transparency to consumers, while still allowing insurers to maintain their underwriting authority and operational flexibility. 

Why this bill matters 

As independent agents know well, homeowners and personal automobile insurance premiums have risen significantly over the past several years, due to a range of factors—including inflation, increased claims severity, weather-related losses, supply-chain pressures and evolving risk models. 

However, for consumers renewal notices often arrive with substantial increases—sometimes 10%, 20% or even 30%—without clear explanation. When policyholders do not understand the reasons behind a premium change, confusion and frustration can erode trust quickly. 

H.B.5373 addresses this issue. 

What the bill does 

H.B.5373 is a broad Connecticut Insurance Department technical bill, but PIACT specifically supports the provisions that would require personal lines policy-premium billing notices to include clear contact information and provide policyholders, upon request, with a reasonable, plain-language explanation of premium increases. These transparency measures would help consumers better understand renewal changes without regulating rates or limiting insurer underwriting authority. 

The bill would amend Insurance Law Sections 38a-663 to 38a-696 to require insurers to: 

• Provide a reasonable explanation for premium increases upon written request; 
• Include a prominent statement on the first page of the billing notice with clear contact information for consumer inquiries; 
• Use clear, understandable language to enable policyholders to determine the general nature and cause of any premium increase; and 
• Allow flexibility for insurers and insureds to agree to electronic delivery of notices. 

Importantly, the bill would not regulate rates, interfere with underwriting discretion, or require disclosure of proprietary rating formulas. It simply would ensure that consumers could obtain a plain-language explanation of the general factors contributing to a premium increase. 

Strengthening consumer trust 

Insurance works best when policyholders understand the product they are purchasing. Clear explanations for premium changes—whether driven by loss experience, updated risk characteristics, inflationary pressures or revised rating factors—empower consumers to make informed decisions. 

Transparency reassures policyholders that adjustments are based on identifiable factors rather than arbitrary decisions. In a challenging rate environment, that clarity is essential to maintaining confidence in the insurance marketplace. 

Reinforcing the role of the independent agent 

Independent agents serve as trusted advisers to their clients. When billing notices clearly identify the reasons for a premium change, agents can engage in more productive, solution-oriented conversations. 

Shared understanding between the insured and the agent strengthens the advisory relationship and enhances the value independent agents bring to Connecticut consumers. 

A measured and meaningful improvement 

For policyholders facing substantial renewal increases, clarity is not just helpful—it is essential. H.B.5373 represents a practical step forward in enhancing consumer understanding while preserving market flexibility. 

By strengthening transparency, reinforcing the role of professional agents, and supporting informed consumer choice, this legislation would promote a stable, competitive and trusted relationship between customers and their independent agents.