Spinnaker Insurance Company has filed a 25.6% average rate increase for its Harborway general liability program in Texas, targeting larger increases at business distributed through agency wholesalers.
The filing affects 5,612 policyholders representing approximately $5.18 million in written premium. Individual increases range from zero to 98.5%, with an expected premium increase of $1.33 million.
In its actuarial memorandum, Simply Business says the agency wholesaler channel is running at a loss ratio above 250%, with an additional shock loss reported after the data evaluation date. The channel accounts for 716 Texas policies and 7,412 of the program’s 70,077 policies nationwide.
The proposal introduces a 1.925 distribution factor for agency wholesalers and excludes those policies from a stabilization rule that otherwise limits eligible annual renewal rate increases to 20%. It also raises the loss cost multiplier and revises primary trade factors.
Simply Business says the changes are intended to reduce cross-subsidization between distribution channels and avoid larger increases for the rest of the book. The filing indicates an overall rate need of 76%.
Requested effective dates are February 1, 2027, for new business and April 1, 2027, for renewals. The filing remains pending state action.
Simply Business’s wholesale partners include Appalachian Underwriters, London Underwriters and USG Insurance Services, though the filing does not identify which partners contributed to Harborway’s underwriting losses.
