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State Farm, Liberty Mutual hiked homeowners rates in 2017

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State Farm, Liberty Mutual hiked homeowners rates in 2017

The groups led by State Farm Mutual Automobile Insurance Co. and Liberty Mutual Holding Co. Inc., which ranked as the largest and the third-largest U.S. homeowners insurers, respectively, in 2016, received several noteworthy rate increases in that business in 2017.

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A half-dozen of the 20 most-impactful rate increases in 2017, as ranked by calculated premiums change, were approved for State Farm. State Farm Lloyds received a rate hike of 3.0% in Texas that could see its written premiums rise by $48.7 million. The remaining five rate increases were approved for State Farm Fire & Casualty Co. in Illinois, Georgia, Oklahoma, Maryland and Missouri. In total, the State Farm group received 43 rate increase approvals in 2017 which could result in cumulative calculated premium increase of $265.0 million, according to an analysis by S&P Global Market Intelligence.

Liberty Mutual received the highest number of homeowners rate increase approvals in 2017 with regulators in Texas granting three hikes that made the most notable list. Overall Liberty Mutual received approvals on 172 rate filing applications in 45 states, which would result in a calculated premium increase of $295.6 million. The rate hikes ranged between 2.0% and 15.3%.

State Farm dominated the notable rate decreases list. Out of the 20 most-impactful rate decreases approved by regulators during the year, seven were for State Farm Fire & Casualty. The 15 rate-decrease approvals the group received in 2017 could result in a cumulative calculated premium decrease of $37.0 million.

In terms of calculated premium increase, 11 out of 20 most-impactful homeowners rate increases were approved Texas. So it is not a surprise that the Lone Star State reported the highest overall calculated premium increase of any state in the country at $435.9 million in 2017. Georgia was a distant second at $144.9 million.

Idaho reported the highest rate increase from a percentage standpoint at 6.7%, followed by South Dakota with a 6.3% increase.

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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.