The State Farm wants more increase in insurance rates after fires in LA

The state farm, the largest insurer for housing owners in California, has asked the state this week to approve the increase in the “emergency” percentages for the holders of the insurance policy, stating that the latest fires in Los Angeles District are impeding their finances.

The company wants an average 22% increase for homeowners and 15% for tenants over the increase in tariffs it requested last year. These requests – 30% for homeowners, 52% for tenants and 36% for condominium owners – have not been provided and disputed to the state insurance department that investigates the financial situation of the company.

In a letter of February 3 Our customers and the insurance market in California. “

The state farm has received more than 8,700 claims and has paid more than $ 1 billion to its customers in the country since February 1, the leaders said. “We know that we will eventually pay much more, as these fires will be collectively the most expensive in the history of the company,” they added.

The company has nearly 3 million policies in the country, including 1 million homeowners policies, leaders said. They mentioned that last year, the AM Best Loan Rating Company lowered the credit rating for General State Farm, the California Shoulder of the National State Farm Group because of its financial picture.

State farms leaders want the intermediate rates to be in force on May 1 and refer to their demands for pending interest from last year. Also in their letter, they mention both the financial position of their company and the current struggles of the state market: “In addition to your other efforts, immediate approval of an additional and appropriately maintained rate … sends a strong message that the state is serious to Reform their insurance market and allows insurers to collect sufficient premiums to protect Californians from the risk of losing their homes. “

Lara’s plan to deal with the availability of insurance activity in the state came into force at the beginning of the year, Only days before the fires in the areaS It is expected to extend a significantly more increased increase in premium as the state allows insurers to Include crash modeling and the price of reinsurance in determining their prices.

In response to the new State Farm request, the department plans a meeting of its experts to review the percentage, state farm and customer guard, which challenged the increase in the rates last year, said the spokesman for the Gabriel Sanchez insurance department. The department staff will then make an “emergency official action recommendation” to the Commissioner, Sanchez said.

Carmen Balber, CEO of the Consumer guard, said her group had repeatedly asked the state farm for more information about her finances, including why his mother could not “go in” and help her business in California. Consumer keeper last year The defendant general of the state farm on the re -reservation of profits by buying reinsurance from its mother, a statement that the company would not comment on.

“The insurance commissioner Lara must require the state farm to prove that it needs this stunning increase,” Balber said.