State Farm
-
Sources said California regulators need to show they’re receptive to private insurer needs. -
The insurer is seeking a 22% interim raise, but the request is currently on hold.
-
The insurance commissioner said the carrier has not shown the need for price increases.
-
The insurer disclosed the estimates as it seeks emergency rate hikes from regulators.
-
The company says the recent wildfires will be the costliest in its history.
-
The carrier has around $2.5bn-$4bn of reinsurance cover specifically for California risk.
-
The company received over 10,100 home and auto claims as of January 27.
-
A state-mandated, one-year moratorium on non-renewals is also in place.
-
Insurers are fighting to recoup claims they have paid out.
-
Independent litigation threatened a $4bn settlement with wildfire victims.
-
The victims claim insurers shouldn’t get settlement cash before they’re made whole.
-
The discrepancy between rising claim counts and favorable reserves is cause for concern.
Related
-
Mutuals: 2023 data shows underperformance at its worst
April 04, 2024 -
AM Best downgrades State Farm General Insurance FSR to B
March 28, 2024 -
State Farm to non-renew 72,000 policies in California
March 21, 2024 -
State Farm names Farney as Tipsord’s successor for CEO
March 15, 2024