Office Completes Hearing On Allstate Homeowners Insurance Rate Increase
TALLAHASSEE (11/2/2006) – The Florida Office of Insurance Regulation held a public hearing today on rate filings submitted by Allstate Floridian Insurance Company (Allstate Floridian) and Allstate Floridian Indemnity Company (Allstate Floridian Indemnity), at The Capitol, in Tallahassee. Allstate Floridian and Allstate Floridian Indemnity have requested average statewide increases of 22.5 and 33.2 percent, respectively, for their homeowners insurance rates in Florida.
"Amongst the numerous shortcomings in this filing, Allstate is asking to charge for reinsurance that it has not yet purchased; it is relying on an outdated hurricane model which is not approved and feeding it outdated data; it seeks to use any unexpected gains produced by policyholder premiums to further compensate its agents rather than compensate policyholders and it says its expense ratio has increased despite the fact it has cut 240,000 policies," said Steve Parton, General Counsel for the Office of Insurance Regulation, at the opening of the hearing.
The proposed rate change is effective for new and renewal business on December 3, 2006, for Allstate Floridian Indemnity and December 4, 2006, for Allstate Floridian. The highest proposed rate change is 73.5 percent for Franklin County and the lowest proposed rate change is -0.1 percent for Washington County.
Allstate Floridian last increased its rates by a statewide average of 16.3 percent and Allstate Floridian Indemnity last increased its rates by a statewide average of 24.4 percent in October of 2005. The Office of Insurance Regulation has until November 28th to complete its review of the filing.
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