After lengthy COVID delay, California approves multiple auto rate hikes in Q4'22

• This analysis by S&P Global Market Intelligence is limited to publicly available rate filings submitted to state insurance regulators.
• Rate filing information is sourced from the System for Electronic Rate and Form Filing documents.
• U.S. states employ a variety of rate regulation mechanisms, such as prior approval, modified prior approval, file and use, and use and file. Form filing laws govern the type of policy form regulation used by each state and may not require explicit approval by regulators prior to using the new rates.
• This analysis is based on when each filing is "disposed" by the state regulator and does not take into account when the new rate became effective for new and renewal business. In some instances, the new rate has been in effect prior to the particular month the filing has been "disposed" by the regulator.

After a moratorium that lasted for more than two years following the start of the COVID-19 pandemic, California finally started to approve personal auto insurance rate increases in the fourth quarter of 2022

California moves on GEICO, Allstate rates

GEICO Corp. subsidiaries received approvals for 72 rate hikes in 19 different states during the quarter, which are expected to boost the group's premiums by $1.65 billion, according to an S&P Global Market Intelligence analysis. This marks the second consecutive quarter that rate action in a three-month period will raise GEICO's auto premiums by more than $1 billion.

California regulators signed off on eight auto rate increases in the fourth quarter of 2022, half of them for GEICO. Two of the most significant rate increases approved in the period took place in the Golden State.

State Farm Mutual Automobile Insurance Co., the largest personal auto insurer in the country, is expected to see its premiums rise by more than $1 billion for the third consecutive quarter due to rate action it took in the period. A total of 48 rate hikes approved across 24 states in the quarter should push the group's premiums up $1.12 billion.

The Allstate Corp. received approval for 74 rate increases in the quarter, which is expected to increase the group's overall premiums by $764.9 million. Allstate Northbrook Indemnity Co. received approval for a 6.9% rate increase in California, which could increase the group's overall premiums by $165.5 million.

Regulators in the fourth quarter of 2022 signed off on rate hikes for United Services Automobile Association and Farmers Insurance Group of Cos. which, when combined, could increase their premiums by $707.3 and $707.2 million, respectively.

* Read about Progressive outpacing GEICO as the 2nd largest private auto insurer. * Download a template to analyze rate changes for selected entities, state or type of insurance over a selected period.

Progressive lowers rates in Missouri

The Progressive Corp. received approval for 37 rate hikes during the quarter, which could increase the group's overall premiums by $236.5 million. Regulators also approved 25 rate cuts in the period for Progressive, which would lower the group's premiums by $63.7 million.

The rate decrease with the largest impact on overall auto premiums was recorded in Missouri. The 2.1% reduction is expected to slash Progressive's overall premiums by $32.3 million.