Allstate secures auto insurance rate hike approval in three states

Allstate wins approval to raise car insurance rates in three states | Insurance Business America

Implementation of new rates will begin this month, CFO says

Engine and fleet

According to
Mika Pangilinan

Allstate won regulatory approval to raise auto insurance rates in California, New York and New Jersey.

CFO Jess Marten said the insurer will introduce rate increases of 30%, 14.6% and 20% in the respective states from December, with effective dates through February 2024.

The rates are expected to increase annual premiums written by approximately $1 billion, according to Marten, following Allstate’s continued plan to improve profitability.

Year-to-date auto insurance rate increases initiated by Allstate resulted in an 11.4% impact on premiums, Marten said. As a result, the insurance giant expects annual written premiums to increase by approximately $2.97 billion.

Meanwhile, Allstate’s brand of homeowner’s insurance grew 10.1%, leading to an increase in expected annual premiums written of about $1.03 billion.

Marten said this increase in implemented rate increases, along with inflation in the cost of replacing insured housing, led to a 12.6% increase in average gross written premiums in homeowners insurance compared to the previous year.

In addition to issuing updates on implemented rates, Allstate said its estimated catastrophe losses remained below the November threshold of $150 million.

“Allstate will improve results while building an enhanced business model to better serve customers, generate attractive returns for shareholders and create opportunity for the Allstate team,” CEO Tom Wilson said in August.

What are your thoughts on this story? Feel free to share your comments below.

Related stories