Donegal Mutual is introducing updates to its businessowners program in Maryland, reflecting a broader recalibration of pricing and loss assumptions.

The filing proposes a 10% overall rate increase, below the 21% indicated need, impacting 932 policyholders and generating an estimated $371,671 in additional premium on a $3.7 million book. The changes are set to take effect July 1, 2026 for both new and renewal business.

The filing follows a 17.5% rate increase in April 2025, suggesting continued pressure on the businessowners line. Maryland-specific experience points to elevated loss ratios in recent years, with severity trends outpacing frequency improvements, driving the need for further rate action.

Donegal frames the change as a balancing act between correcting for loss experience and avoiding disruption in the market, targeting a 94 combined ratio and incorporating expense and reinsurance considerations into its pricing model.