Hanover, through Allmerica Financial Benefit Insurance Company, is seeking a 10.6% rate increase for its small commercial property product in North Carolina.

The filing affects 3,566 policyholders and approximately $12.5 million in written premium, producing an estimated premium increase of $1.3 million. Individual policy changes may range from a 19.6% decrease to a 35.4% increase.

Proposed increases vary by class, including 17.3% for professional businesses, 15.4% for medical facilities, 12.5% for apartments and 10.4% for condominiums.

The proposed change follows a 6.1% increase that took effect in April 2026. The new rates are requested for April 1, 2027.

The filing description and explanatory memorandum reference a 20.8% impact, but the rate exhibits, questionnaire and policy-level analysis show a proposed overall increase of 10.6%, compared with an indicated need of 11.9%.

The filing explains that because the Small Commercial Product has limited historical data, Hanover combined its experience with data from BOP Avenues when developing the rate indication.

Bottom Line: “All BOP Avenues policies will soon be converted to the Small Commercial Product.”