Hugo Insurance Exchange has filed for a 16.8% rate decrease in its private passenger auto program in Arkansas. The new rates take effect on June 10, 2025 for new business and July 10, 2025 for renewals.

The filing affects 65 policyholders with a combined written premium of $87,374. The change reduces premiums by $14,718, with individual impacts ranging from 11.9% to 19%.

Hugo adjusted its permissible loss ratio upward from 50.1% to 59.9%, a move that allows greater pricing flexibility. The company attributed the change in part to competitive pressure from The General, which filed significant base rate cuts earlier in 2025. Hugo mirrored roughly half of those adjustments to avoid overcorrection while maintaining a competitive position in the market.

Rate decreases vary by coverage, with bodily injury down 17.1%, property damage down 21.9%, comprehensive down 18.2%, collision down 26.8%, medical payments down 11.9%, uninsured and underinsured motorists down 1.0%, and rental and towing down around 14.6%.

Hugo entered the Arkansas market in February 2025 and has written 65 policies since launch. In Mississippi, where it began in October 2024, the exchange recently filed a 14% decrease effective April 2025. The Arkansas program is supported by a 50% quota share reinsurance treaty, with an expected reinsurer margin of 7%, resulting in a 3.5% reinsurance provision in Hugo’s pricing model.