How to Check Insurer Profits and Rate Filings

Statutory statements and the NAIC

Insurers in the United States file detailed financial reports with state regulators each year, called statutory annual statements, along with quarterly statements. These use accounting rules set for insurance regulators, which can differ from the rules used in stock market reports.

The National Association of Insurance Commissioners (NAIC) sells copies of individual company statements through its InsData service. It also publishes free summary reports, including market share reports by state and line of insurance, and a Profitability by Line by State report that estimates premiums, losses, expenses, and investment income.

SEC filings versus mutual insurers

Insurers whose stock is publicly traded file an annual report called a Form 10-K with the Securities and Exchange Commission (SEC). You can find it for free in the SEC's EDGAR search. A 10-K usually shows totals for the whole company, often across many states and products, so it rarely tells you how one line did in your state.

Mutual insurers are owned by their policyholders and generally do not sell public stock, so many do not file 10-Ks at all. Their statutory statements filed with state regulators are the main place to see their results.

Loss ratio and combined ratio, in plain numbers

Two numbers come up often. The loss ratio is claims paid or owed divided by premiums earned. The expense ratio is the insurer's operating costs divided by premiums. Add them and you get the combined ratio.

Example: an insurer earns $100 million in premiums, has $65 million in claims, and $28 million in expenses. Its loss ratio is 65 percent, its expense ratio is 28 percent, and its combined ratio is 93 percent. Below 100 percent means it made money on underwriting. Above 100 means it lost money on underwriting, though investment income can still make it profitable overall.

Look up rate filings in your state

In most states, insurers file their rates and policy forms with the state insurance department before using them. Many states let the public search these filings online through SERFF Filing Access, a system run by the NAIC. Each state has its own search page, and you can only see filings the state has marked public.

• Go to your state insurance department's website and look for rate and form filings or SERFF Filing Access.
• Search by company name, line of insurance, or a filing number if you have one.
• Look for documents like an actuarial memorandum or rate exhibit, which explain the requested change.
• If a filing is not online or will not download, ask the department how to request it. Some states use a public records request.

Ask questions or file a complaint

Your state insurance department can answer questions about rates and your rights. If you have a problem with a claim, cancellation, or nonrenewal, the NAIC suggests trying to resolve it with the insurer first, then filing a complaint with the state.

Most departments accept complaints online, by mail, or by phone, and there is no charge. The department sends your complaint to the insurer, which must respond. The NAIC says insurers cannot retaliate against you for complaining.

• Gather your policy number, letters, bills, and photos.
• Keep a log of calls and emails with dates and names.
• Write a short, factual timeline and say what outcome you want.