Allstate secures approval to raise auto insurance rates in three states
Allstate secures approval to raise auto insurance rates in three states | Insurance Business America
Motor & Fleet
Allstate secures approval to raise auto insurance rates in three states
Implementation of new rates will begin this month, says CFO
Motor & Fleet
By
Mika Pangilinan
Allstate has secured regulatory approval to increase auto insurance rates in California, New York, and New Jersey.
CFO Jess Marten said the insurer will be implementing rate increases of 30%, 14.6%, and 20% in the respective states beginning December, with effective dates through February 2024.
These rates are expected to increase annualized written premiums by approximately $1 billion, according to Marten, building on Allstate’s ongoing plan to improve profitability.
Auto insurance rate increases initiated by Allstate since the beginning of the year have led to a premium impact of 11.4%, Marten said. As a result, the insurance giant is expecting annualized written premiums to grow by approximately $2.97 billion.
Meanwhile, the Allstate brand homeowners insurance saw a 10.1% increase, driving anticipated annualized written premiums up by approximately $1.03 billion.
Marten said this surge in implemented rate hikes, coupled with inflation in insured home replacement costs, led to a 12.6% upswing in homeowners insurance average gross written premium compared to the preceding year.
In addition to issuing updates on its implemented rates, Allstate announced that its estimated catastrophe losses remained below the $150 million reporting threshold for November.
“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,” said CEO Tom Wilson back in August.
What are your thoughts on this story? Feel free to share your comments below.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
