California’s Insurance Czar told insurance companies no to their hopes of being able to raise rates significantly in the wake of the LA Fires.
California insurance commissioner rejects State Farm’s emergency rate hike request – WAND
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Excerpt:
California Insurance Commissioner Ricardo Lara on Friday refused to grant State Farm’s request for an average 22% emergency rate increase for homeowners’ insurance. Lara is also requesting the Bloomington-based company answer questions about its financial condition following the Los Angeles wildfires.
State Farm responded that it is “very disappointed” the commissioner ignored his own department’s recommendation to approve the interim rate hikes, and it has already gone to great lengths to “clearly” answer his questions.
Reacting to the commissioner’s decision, State Farm indicated it will consider its options about doing business in California.
“This lack of approval sends a strong message to State Farm General about the support it will receive to collect sufficient premiums in the future to protect Californians against the risk of loss to their homes,” the company said. “While we’re positioned to handle all of the claims associated with the most recent wildfires, State Farm General must seriously consider its options within the California insurance market going forward.”