The Allstate Corp. accounted for four of the 10 most notable personal auto premium increases approved in the third quarter, according to an S&P Global Market Intelligence analysis.
Allstate Fire and Casualty Insurance Co. obtained the highest calculated premium change of $305.5 million, corresponding to an 18.7% rate increase affecting close to 485,000 policyholders in New York. The Allstate subsidiary also received the green light for a rate increase of 5.9% in Texas, resulting in a calculated premium change of $194.9 million.
Two other Allstate units obtained the go-ahead for rate increases of 25% in Georgia and 13.9% in New Jersey, resulting in calculated premium changes of $188.9 million and $126.6 million, respectively. The Georgia rate increase went into effect in 2022 but was disposed by the state's regulator Sept. 11, 2024.
A Liberty Mutual Holding Co. Inc. unit secured the highest rate change on the list, a 41.6% hike granted by California, resulting in a calculated premium change of $152.9 million.
CSAA Insurance Exchange secured the second-highest calculated premium change of $245.9 million, corresponding to rate change of 6.9%, impacting about 1.1 million policyholders in California.
Farmers Insurance Group of Cos. received a 7% rate increase in California, resulting in a calculated premium change of $105.1 million.
State Farm Mutual Automobile Insurance Co. had two notable premium increases, both in Colorado: a calculated premium increase of $112.8 million corresponding to an 8.3% rate hike and a $92.6 million calculated premium increase corresponding to a 6% rate change. The former rate increase went into effect at the end of 2023.
Erie Indemnity Co. rounded out the top 10 with a 22% rate increase, corresponding to a calculated premium change of $92.5 million.
All figures in this analysis are based on as-reported numbers filed in the rate filings of each subsidiary in each state. The calculated premium change is not a final projection of the additional premium the insurer may receive in the upcoming year. The calculated premium change is reported by each insurer to reflect the most impactful premium changes based on the combined impact of the percentage change and the amount of business it affects. Changes to the insurer's policy mix or policies in force are not factored into the analysis.
US states employ a variety of rate regulation mechanisms, including prior approval, modified prior approval, file and use, and use and file. Some states do not require explicit regulatory approval prior to insurers using new rates. This analysis is based on when rate filings are "disposed" by state regulators and does not take into account when those new rates became effective for new and renewal business. In some instances, a new rate may have been in effect prior to the month the filing was approved by the regulator.
Allstate receives multiple notable rate increases
Seventeen states gave the green light for a total of 25 notable rate increases of 20% or more on books of business worth at least $20 million, with California approving the most at five. Idaho, Maryland, Texas and Washington were all tied for second, each granting two notable rate increases.
Of the 25 notable rate increases, Allstate received five, including the highest approved rate change in the list. Encompass Insurance Co., a subsidiary of Allstate, obtained the green light for a rate hike of 42.2% in California, leading to a calculated premium change of $77.4 million.
Liberty Mutual Fire Insurance Co. received four notable rate increases, the highest being a 41.6% rate hike in California, which was the second-highest notable rate increase in the third quarter. United Services Automobile Association obtained three notable rate increases during this period.
Notable decreases
State Farm had 10 rate decreases approved in the third quarter.
The most significant was a 7.5% rate decrease in North Carolina, affecting more than 1.4 million policyholders. State Farm also obtained the go-ahead for a 3.3% rate decrease in Georgia, expected to come into effect in February 2025.