Farmers, Liberty Mutual on-track for significant premium gains
Farmers Insurance, meanwhile, came in second, as its subsidiaries stand to see additional premiums of more than $575 million across 42 states.
Rate increases for Liberty Mutual, Farmers
According to S&P Global, some of the largest increases to homeowners insurance rates were granted in Texas, where regulators approved hikes that would raise Liberty Mutual’s rates by 20.8% and Farmers’ rates by 9.6%.
Texas regulators similarly approved rate hikes for other major insurers, although by smaller amounts. USAA was approved to boost its rates by 4.9%, while State Farm and Allstate were given the green light to increase theirs by 5.1% and 6.2%, respectively.
Liberty Mutual also received approval to raise rates in twelve other Southern states, with an effective rate increase exceeding 10% in six of those states.
In total, the insurer may see premiums rise $408.4 million in the region based on a constant customer base, analysis by S&P Global said.
Another notable increase in the South was in Oklahoma, where Farmers is set to raise its homeowners’ rates overall by 41.7% across its book of business following 11 filings with the state’s insurance regulator.
Farmers similarly received approval to raise homeowners’ rates in every Northeastern state, with five states seeing increases in excess of 20%, while Liberty Mutual had approval for rate increases of between 8% and 12% in four states within the same region.
Other significant increases for Allstate, USAA
Allstate is expected to see its most significant increase in the Midwest, with an overall rate increase of 17.8% in Illinois. S&P Global said this should raise calculated premiums up $104.6 million based on its current book of business.
Meanwhile, USAA received approval to raise rates in several Western states, including Nevada, New Mexico, Oregon, Utah, and Washington. The significant change was in Arizona, where overall rates increased by 32.1%, resulting in a calculated premium change of $68.1 million in the state.
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