Regulators in Texas approved several noteworthy private-passenger auto rate increases in November, which may lead to a combined net increase of $213.9 million in calculated premiums written in the Lone Star state, according to an S&P Global Market Intelligence analysis.
Among the insurers receiving rate increase approvals in Texas, Berkshire Hathaway's GEICO Corp. received the most significant increase in terms of calculated premium change. Six units of the nation's second-largest private auto insurer received rate hikes ranging between 3.4% and 10.1%, which could result in additional premiums of $169.1 million in the state. Approximately 1,150,000 policyholders were impacted when the renewals went effective July 7, according to the rate filing.
Overall, GEICO's written premiums could go up $209.8 million due to the approvals it received on its private-passenger auto business during November.
Colonial County Mutual Insurance Co., a Texas-domiciled subsidiary of Nationwide Mutual Group, received rate hikes on its private-passenger auto business, which could potentially bump up its premiums by $38.8 million in the state. The new rates on renewal business are set to go effective on Jan. 17, 2018.
Michigan regulators approved some rate changes for the group led by Auto Club Insurance Association during the month, which could lead to an increase of $45.1 million in calculated combined premiums in the state.
Among notable rate decreases for the month, only American States Insurance Co. received a rate cut that could result in a decline of more than $1 million in calculated premiums written. The subsidiary of Liberty Mutual Holding Co. Inc. was approved for a 3.9% rate decrease on its private-passenger auto business in Pennsylvania.
Click here for a template providing rate changes for a selected entity, state or type of insurance over a selected time period using interpretive charts and histograms. With this template, one can also view information on each filing along with key metrics related to premiums, approval time and affected policyholders.
Click here for a webinar on how to use the above template and to understand the calculation methodology used in it.