Office Of Insurance Regulation Approves Reduced Allstate Homeowners Insurance Rate Increase
TALLAHASSEE (12/19/2006) The Florida Office of Insurance Regulation (Office) today approved revised rate filings submitted by Allstate Floridian Insurance Company (Allstate Floridian) and Allstate Floridian Indemnity Company (Allstate Indemnity). The Office approved rate increases of 8.2 percent for each company.
Allstate Floridian and Allstate Indemnity originally requested average statewide increases of 22.5 and 33.2 percent, respectively, for their homeowners insurance rates in Florida. Following a public hearing on November 2nd, the company amended its filing and lowered the rate requests to 19.1 percent for Allstate Floridian and to 26.4 percent for Allstate Indemnity.
For both the original filing and the amended filing the Office cited a number of areas where the requests were not adequately supported. These included Allstate asking to charge for reinsurance that it has not yet purchased, seeking to use any unexpected gains produced by policyholder premiums to further compensate its agents rather than policyholders and increasing its expense ratio despite the fact it is cutting 240,000 policies.
"There was little or no support for numerous aspects of this rate hike in both the original filing and in the amended filing," said Insurance Commissioner Kevin McCarty, "and the responses we received at the public hearing were not much better. However these filings reflect rates that the Office determined were justified."
Florida law requires that the Office hold public hearings on rate filings for statewide average increases exceeding 15 percent or for any reason the Office deems necessary.
Allstate Floridian last increased its rates by a statewide average of 16.3 percent and Allstate Indemnity last increased its rates by a statewide average of 24.4 percent in October of 2005.
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