California granted Allstate a 4% rate hike requested in 2021, but the state’s fifth largest home insurer isn’t lifting its “pause” on new policies announced last fall.
Allstate has received California’s blessing to raise homeowner insurance premiums 4%, but the state’s fifth largest home insurer said it has no plans to reverse its decision last fall to stop writing new policies.
“We paused new homeowners, condo and commercial insurance policies in California last year so we can continue to protect current customers,” Allstate said in a statement. “The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes, and higher reinsurance premiums.”
, raising the specter of an insurance doom-loop like that in Florida. Despite the country’s highest insurance rates, Florida has seen national insurers withdraw, and more than half of insurers based in the state are on a financial health watch list and seven have liquidated in the past year and a half.historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure and a challenging reinsurance market.
Allstate, with 6.4% of California’s home insurance market and $792 million in direct written premiums,that it would stop writing new California home policies. The company said last fall it was raising its insurance prices nationally due to inflation, 13.3% for home policies, and would expand plans to reduce insurance in states with “unacceptable auto and home insurance margins.”
Rosenfield said Allstate is seeking a 39.6%, $196 million rate increase that Consumer Watchdog is now reviewing.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Allstate says it shouldn't have to cover claims in deadly dog attackAn insurance giant argues in a lawsuit that it's not obligated to pay damages claimed by the widow of an Air Force veteran killed by another couple's dogs.
Read more »
Breakingviews - Nasdaq futureproofs itself, but at 2021 pricesNasdaq is catapulting itself into the future - but paying yesterday’s high prices to get there. The U.S. exchange operator is buying Adenza, a software firm that serves banks and brokers, for $10.5 billion from private equity group Thoma Bravo. Adenza fits neatly with Chief Executive Adena Friedman’s mission to re-mold Nasdaq from a simple exchange into a general problem-solver for financial firms. That logic is compelling; the price of the deal is less so.
Read more »
Inflation lowest since 2021 before pivotal Federal Reserve meetingOne-year inflation expectations are down 0.3%, dropping to a 4.1% rate — the lowest annual outlook since May 2021, according to the New York Fed’s Survey of Consumer Expectations in May.
Read more »
National Transportation Safety Board releases final report on fatal 2021 Monterey plane crashThe National Transportation Safety Board has determined that the probable cause of the Monterey plane crash that killed two people and a dog in July 2021 was pilot “spatial disorientation,” resulti…
Read more »
Inflation cooled to 4% in May, the lowest reading since March 2021The inflation rate has been on a steady decline, but the latest numbers show there are still areas of the economy where consumer prices remain stubbornly high.
Read more »
Inflation declines to 4% in May, lowest since March 2021Annual inflation slowed to a 4% rate in May, the Bureau of Labor Statistics reported Tuesday, down from 4.9% the month before.
Read more »