State Farm General asked Monday for an emergency rate increase averaging 22%, saying the Los Angeles County fires have put California's largest insurer in dire financial straits.
State Farm is asking California's insurance regulator to approve an emergency rate hike due to the number of claims it received after last month's devastating wildfires.
State Farm General, California’s largest insurance provider, has requested an emergency interim rate hike averaging 22% for homeowners from state officials on Monday, citing a “dire” financial situation after destructive Los Angeles wildfires last month.
State Farm asked California on Monday if it could hike insurance rates in the state by an average of 22% to address what it was claimed was a potentially "dire situation" related to payouts from the devastating Los Angeles-area wildfires
State Farm Insurance has requested the California Department of Insurance (CDI) to immediately approve interim rate hikes ranging from 15% to 38% for rental dwellings, homeowners and tenants, citing expected capital losses following the wildfires in L.A. County.
State Farm has nudged California to immediately approve a 22% rate increase for homeowners in the wake of the devastating Los Angeles County wildfires.
State Farm, the largest home insurer in California, is asking for an emergency rate hike from state regulators as it warns that multibillion-dollar payouts from the Los Angeles wildfires threaten its balance sheet and the broader insurance market.
State Farm filed a request with the state Monday for an emergency 22% rate hike for homeowner policies, calling the increase essential to stave off a "dire situation" for customers and the insurance industry in the state.
State Farm argued the rate hikes are justified due to the high risks the company has underwritten, particularly after premiums were kept artificially low.
