Subsidiaries of Erie Indemnity Co. and Liberty Mutual Holding Co. Inc. secured five out of the 10 most notable commercial auto insurance rate increases during the third quarter of 2024 in terms of calculated premium change, according to an S&P Global Market Intelligence analysis.

Erie received the second-, eighth- and 10th-most notable rate increases of this analysis, while Liberty Mutual took sixth and ninth place. Erie's most impactful rate increase cleared during the period will affect roughly 21,000 policyholders of Erie Insurance Exchange. Its request to boost its overall rate by 12.4% in Virginia — translating into a calculated premium change of $14.3 million — took effect Nov. 1 for new and renewal business.

Erie Insurance subsidiaries also secured rate hikes of 4.2% in Pennsylvania and 10% in North Carolina. Liberty Mutual unit Ohio Security Insurance Co. received rate increases of 15.2% in Washington and 17.0% in Texas.

The Hartford Financial Services Group Inc. subsidiary Nutmeg Insurance Co. received approval for the largest reported calculated premium change in the third quarter at $20.4 million in Texas, equal to a 14.1% rate increase. This rate increase went into effect Aug. 1 for new and renewal business and will reportedly impact about 1,500 policyholders.

Out of the top 10 rate increases by calculated premium change, five were approved in Texas, with the others approved in Virginia, Utah, Washington, Pennsylvania and North Carolina.

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. Each insurer reports calculated premium change 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 as well as 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.

Insurers receive major rate hikes in Texas

In the third quarter, insurers in Texas secured three rate hikes in excess of 15% for books of business with over $20 million of written premium, more than any other state within this particular analysis.

AmGUARD Insurance Co., a subsidiary of Berkshire Hathaway Inc., received the largest rate hike of the quarter on a percentage basis: a 56.5% increase reported to affect 627 policyholders. The rate change became effective in August for new and renewal business. The second-highest rate hike approval of 27% for Federated Mutual Insurance Co. was also in Texas, resulting in a calculated premium change of $14.1 million, reported to impact over 2,000 policyholders.

– Read an article about the rates performance of US commercial auto insurers in the second quarter of 2024. – Download a template to analyze rate filings across select entities, lines of business and states over selected periods of time.