What is a major focus of the NC Rate Bureau when making insurance rate recommendations?

The major focus of the North Carolina Rate Bureau when making insurance rate recommendations is to ensure adequate rates based on loss experience. This means that the Bureau analyzes past claims and loss data to determine what premiums are necessary for insurers to remain financially stable while effectively covering potential future claims. By focusing on loss experience, the Bureau seeks to create rates that not only cover the costs of claims but also consider the overall risk associated with insuring a particular group or type of coverage.

This approach is crucial because if rates are set too low based on insufficient analysis of loss experience, insurers may struggle to pay claims, potentially leading to financial instability within the insurance market. On the other hand, setting rates that are justified by loss experience helps maintain the health of the insurance industry, ensures consumer protection, and fosters a reliable insurance environment.