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Allstate Wins Rate Hikes From State Regulators

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Dec 19, 2006 1:47 pm US/Eastern

Allstate Wins Rate Hikes From State Regulators

TALLAHASSEE (CBS4) ― Rates are headed up for customers of two Florida-based subsidiaries of Allstate Insurance, but not by as much as the insurer first wanted.

Florida insurance regulators have approved rate increase of just over 8% for both Allstate Floridian and Allstate Indemnity, two subsidiaries of Allstate which write homeowners policies only in Florida. The company has originally asked state officials for rate increases of as much as 33%, but ran into opposition by regulators.

State officials had been concerned Allstate had asked for too much money to cover the higher cost of re-insurance. A calm Hurricane season in 2006 caused the insurance for insurance companies to me available at lower than expected prices, and in the state's opinion, that lessened Allstate's need for a large increase.

Allstate revised its rate requests downward before the state could act and possibly reject them. The revised increases were approved without major discussion. Allstate's new rates will take effect on policies which renew after February 11th, 2007.

The Florida legislature is gearing up for a special session in January to address the cost and availability homeowners insurance in Florida, following a host of devastating hurricanes which have brought, in some cases, triple-digit insurance increases.

((© 2006 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
CBS4 news partner The Miami Herald contributed material for this repo)

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