On Jan. 15, 2025, IDNA INS published Bulletin 277 on loss ratio standards in register.
On Dec. 20, IDNA INS published credit life, accident and health rates.
IDNA INS issued Bulletin 277 to fulfill triennial requirement on loss ratio standards.
Per IDNA INS 760 1-5.1-4, benefits provided by consumer credit insurance policies must be reasonable in relation to premium charged; triennial review is required.
Data from calendar year 2021, 2022, 2023 is now available to be reviewed.
Follows 2021 IDNA INS rate review published in Bulletin 262; see rule #123199.
Loss Ratio Standards
Loss ratio of not less than 55% is regarded as reasonable; IDNA INS 760 1-5.1-1 provides prima facie rates considered to meet reasonableness requirement.
Rates
Discount rate increased from prior analysis; which produced average of 1.42%.
Also, discount rates to be used are 3.47% for life; 3.07% for accident and health.
The life discount rate includes 0.4% for mortality; based on 3 year treasury rate.
Loss ratio for credit life has been above 55%; increase of 32.5% to prima facie rate.
Aggregate rate adjustment for prima facie is 32.5%; increase monthly outstanding, balance rate to $1.07/month per $1k of outstanding insured debt on single life.
$1.79/month per $1k of outstanding insured debt on joint life; loss ratio for accident, health/disability is below 55% target set in rule; indicated reduction would be 6.1%.
Published credit accident, health prima facie rates; which are single premium rates based on type of coverage (14, 30 day retroactive, non-retroactive), length of loan.
Effectiveness
Insurers may implement the new rates any time after the release of Bulletin 277.
Reduced credit health and accident rates should be effective by Jul. 1, 2025.
Jan. 2025 IDNA INS Bulletin Publication
On Jan. 15, 2025, IDNA INS published Bulletin 277 on loss ratio standards in register.
