Could rising insurance rates swamp NC commissioner's reelection bid?

Insurance Commissioner Mike Causey, facing a primary challenge this March, went to unusual lengths Thursday to distance himself from a highly unpopular homeowner's insurance rate increase proposal.

Some political observers say that could be because the proposal could hurt Causey in the March primary.

On Friday, Causey released a statement about how the process works.

"There is clearly a lot of confusion over who sets the insurance rates here," Causey wrote. "Primary politics never came into play - I am focused on doing my job and best serving the people of North Carolina."

Causey also wrote that he is confident about winning the March primary.

Earlier this month, the NC Rate Bureau, which represents the insurance industry, requested increases averaging 42% statewide, and as high as 99% for homes on the southeastern coast.

WRAL News heard from a lot of viewers upset about the proposed rate hikes.

One viewer on a fixed income said, "This is an outrage. People are struggling daily. People are living from day to day. There's a lot of people I know that can't even afford their medicines."

The Department of Insurance has heard from a lot of people, too. More than 8,600 people have emailed comments so far, compared to just 1,000 for the last homeowner’s rate hike proposal in 2020. And that total doesn't even include all the calls and letters.

Causey released a video Thursday explaining that the proposal came from the insurance industry, not from his office. He stressed that it's still under negotiation.

"I know that number may sound shocking at first," Causey says in the video, "but as your insurance commissioner, I am committed to fighting for lower rates for you, the consumer."

No commissioner in the past 20 years has gone to such lengths to distance himself from a rate hike proposal.

Causey, who's up for re-election this year, is facing two primary challengers in March. At the same time, his public image has taken a hit from recent investigative stories about his hiring of friends for highly paid jobs. And he's been the target of Republican lawmakers who stripped away his State Fire Marshal title after he criticized key proposals backed by legislative leaders.

"The news around the insurance commissioner isn't good," said Meredith College political science chairman David McLennan. "He's got a number of issues impacting his political future."

McLennan says most voters don't understand exactly what the state insurance commissioner does. But after so much inflation recently, they're extremely conscious of price increases right now.

"For even a modest increase in their insurance rates, they want to blame somebody," McLennan said. "The insurance commissioner, even though he may not have much to do with the rate increases, still is the person to blame. And that person is on the ballot, while the insurance companies are not."

Next week, voters will have a chance to weigh in on the proposed rate hike at a public comment hearing. It starts at 10 a.m. Monday at the Raleigh offices of the state Department of Insurance.

Causey says those who can't attend the hearing can still email their comments to 2024Homeowners@ncdoi.gov.