A new rule from the Washington Insurance Commissioner will require insurers to explain to policyholders why their premiums have gone up.The new premium change transparency rule goes into effect Saturday, June 1. And by 2027, insurers must disclose the reasons behind increasing their premiums every time a policy renews, according to the Office of the Washington State Insurance Commissioner.The new rule covers auto and homeowner insurance policies for people in Washington.
The insurance company then has 20 days to respond and provide a reasonable explanation for the increase if it's requested.Phase 2 starts on June 1, 2027, and will require insurance companies to send a notice to policyholders at least 20 days before a renewal with a 10% or more increase.The explanation must list what primary factors led to the premium increase, whether it be the policyholder’s age, credit history, education, gender, marital status, and occupation.