Hugo Insurance Exchange has filed and received approval for a private passenger auto insurance rate decrease in Mississippi, with the filing (SERFF Tracking Number HUGO-134460444) going into effect on April 21, 2025, for new business and May 21, 2025, for renewals.

The approved changes deliver an overall statewide rate decrease of -14.2%, with rate adjustments varying by coverage. Bodily Injury liability is reduced by 14.8%, Property Damage by 17.0%, Medical Payments by 19.4%, and Collision by 18.5%, while Uninsured Motorist coverages see modest increases of 2.2%.

The filing affects 178 policyholders, representing a total written premium of $238,166, and the approved decrease translates to a -$33,807 premium change for members, with 0% of insureds seeing an increase of 25% or more.

Hugo Insurance Exchange, a reciprocal insurer launched in October 2024, is targeting the nonstandard auto market in Mississippi and has adopted several strategic measures in this filing, including setting all distribution channel factors (Independent Agent, Call Center, Direct) to 1.0 with off-balancing applied until sufficient channel-specific data is available, building upon revisions from First Acceptance which Hugo used as a “me-too” benchmark when launching its program, and reflecting savings back to policyholders through adjustments to the permissible loss ratio, partly offset by reinsurance costs.

Supporting exhibits show that 2024 was Hugo’s first year writing business, with $32,413 in direct premiums written and earned for Mississippi auto, while expense provisions were set at 20% for commissions and brokerage, 8.3% for other acquisition, 14.7% for general expenses, 3.6% for taxes and fees, and 5.3% for profit and contingencies, consistent with First Acceptance’s filings.