American Family sees largest commercial auto rate increase in June

_{U.S. states employ a variety of rate regulation mechanisms, including prior approval, modified prior approval, file and use, and use and file. Some states do not require explicit regulatory approval prior to insurers using new rates. This analysis is based on when rate filings are "disposed" by state regulators and does not take into account when those new rates became effective for new and renewal business. In some instances, a new rate may have been in effect prior to the month the filing was approved by the regulator.}

American Family Insurance Group is expected to see the largest cumulative commercial auto premium increase from rate hikes approved in June, according to an S&P Global Market Intelligence analysis.

The group received approval for five rate hikes across five states, which could increase the group's overall premiums by $8.9 million.

NGM Insurance Co. Inc., a subsidiary of American Family Insurance, secured approval for a 15.0% rate increase, which alone could increase the group's overall premiums by $6.8 million. The new rate goes into effect Oct. 1 for new businesses and Dec. 1 for renewals.

Auto-Owners, Travelers also increase rates

Auto-Owners Insurance Group is expected to see the second-largest cumulative increase after securing approvals for 11 rate hikes that could increase the group's total premiums by approximately $8.3 million.

The Travelers Cos. Inc. also secured approval for 32 rate hikes, which could boost the group's overall premiums by $7.6 million

* Download a template to analyze rate changes for selected entities, state or type of insurance over a selected time period. * Read about the commercial auto sector's increase in premiums in the first quarter.

Sentry decreases rates

While Sentry Mutual Holding Co. received approvals for nine rate reductions, the overall impact on premiums was a modest decrease of $30,277. However, Sentry's premium is still estimated to increase as the group's affiliates also filed for 24 rate increases that could raise overall premiums by $5.6 million.

Overall, commercial auto rate increases outpaced reductions in June as only five rate filings included in the analysis are expected to result in written premium reductions of more than $5000.