The State Farm wants more increases in insurance rates after fires in Los Angeles

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The state farm, the largest insurer for housing owners in California, has asked for this week for a state that approves the increase in the “emergency” rates for insurance policy holders, saying the latest fires of Los Angeles County is threatening your finances.

The company wants an average increase of 22% for homeowners and 15% for tenants, in addition to the interest rates requested last year. These requests (30% for homeowners, 52% for tenants and 36% for condominium owners) have not been provided and are disputed to the State Insurance Department, which investigates the financial position of the company.

In a letter dated February 3, the Executive Director of State Farm, Dan Krause, and Other Executives Wrote to the Insurance Commissioner Ricardo The Company “Needs Its Urgent in the ATE TO HELP TO AVOID A desperate situation for our clients and the insurance market in California. “

The state farm has received more than 8,700 requests and has paid more than $ 1,000 million to its customers in the state by February 1, the leaders said. “We know that we will eventually pay a lot more, as these fires will be, together, the most expensive in the history of the company,” they added.

The company has about 3 million policies in the country, including 1 million policies for housing owners, leaders said. They mentioned that last year, the best credit qualification company AM reduced the General State Farm credit rating, the California subsidiary of the state farm at national level due to its financial status.

State distant leaders want the temporary rates to come into force on May 1 and refer to their upcoming prices for prices last year. Also in their letter, they relate to both the financial position of their company and the current difficulties of the state insurance market: “In addition to its other efforts, the immediate approval of an additional and duly maintained rate … sends a violent message that the state It takes its insurance market reform and allows insurers to charge enough premiums to protect the Californians from the risk of losing their homes. “

Lara’s plan to deal with the existence of insurance in the state, came into force at the beginning of the year, Just a few days before the fires in the Los Angeles areaS It is widely expected to lead to significantly higher increases in premiums as the state allows insurers Include crash models and the price of reinsurance when fixing its prices.

In response to the new request of the state farm, the department is on a schedule at the meeting of its experts in the revision of the tariffs, the state FAR and the consumer guard, which last year disputed the increase in the rates, said the spokesman for the Ministry of Insurance Gabriel Sanchez. The staff of the department will then make an “emergency official recommendation” to the commissioner, Sanchez said.

Carmen Balber, CEO of the consumer guard, said her group has repeatedly requested a state farm more information about her finances, including the reason why her mother cannot intervene and help their business in California. Consumer keeper last year Acusó General State Farm To redirect profits by buying reinsurance from your mother company, an accusation that the company does not want to comment on.

“The Lara Insurance Commissioner must request the state farm to prove that he needs this incredible increase,” Balber said.

This article was originally published by CalmattersS