7 Jul, 2022
Progressive, State Farm see major private auto rate increases in May
By Hassan Javed
States employ a variety of rate regulation mechanisms such as prior approval, modified prior approval, file and use, and use and file. The form filing laws govern the type of policy form regulation used by the state and may not require explicit approval by the state regulator prior to using the new rate. This analysis is based on when the rate filing is "disposed" by the state regulator and does not take into account when new rates became effective for new and renewal business. In some instances, the new rate was in effect prior to the particular month the filing has been "disposed" by the regulator.
The Progressive Corp. may see the largest rise in cumulative private auto premiums written from May rate increases, according to an analysis by S&P Global Market Intelligence.
Overall, Progressive subsidiaries secured approval for 24 rate hikes across six states during the month, which could bolster the group's aggregate premiums by $671.7 million. A pair of rate hikes approved by Texas regulators for Progressive County Mutual Insurance Co. could lead to $489.9 million in additional premiums for that unit alone.
State Farm, GEICO also boosting rates
State Farm Mutual Automobile Insurance Co., the largest private auto insurance underwriter in the U.S., managed to get approval for 17 rate hikes in May, which could raise total premiums across the group by $380.7 million. Nearly 48% of that projected increase stands to come from a single rate hike
GEICO Corp. continued to increase private auto rates, securing 14 rate hike approvals in May. The group could see its cumulative premium grow by $147.9 million from those increases. Of that total, $121.4 million is expected to come from two rate hikes approved in New Jersey.
* Download a template to analyze rate changes for selected entities, state or type of insurance over a selected time period.
* Read about the growth outlook of the P&C industry.
Nationwide tops rate cut chart
Two subsidiaries of Nationwide Mutual Group received approval to lower rates in Pennsylvania. The approved rate cuts could result in the largest premium decrease for any insurer during the month at $3.7 million. The new rates will take effect Jan. 6, 2023, on a renewal basis.
