Miami Herald: State Farm asks for 19.1 percent rate hike in La.
Jan 8, 2010
The Miami Herald published this article on January 9, 2010.
The Associated Press
State Farm Fire and Casualty Co., Louisiana’s largest homeowners insurer, has asked insurance regulators for a rate increase that would average 19.1 percent statewide.
The Louisiana Department of Insurance will consider the request, which could generate $67.6 million, or an average of about $229 per policyholder. The company has about 296,000 policyholders in the state.
Insurance rates vary statewide, but rates are generally higher in storm-vulnerable coastal areas. State Farm spokeswoman Molly Quirk-Kirby also said individual increases will vary depending on deductibles and policy limits.
Quirk-Kirby said rate increase requests are based on projections of future losses and expenses – and not past losses, such as insurers sustained during the hurricanes of 2005 and 2008.
State Farm received an average 8.3 percent increase last year in Louisiana after asking for 13.7 percent. Quirk-Kirby said that the company had projected that future losses and expenses called for a 28.2 percent hike.
“Knowing that was substantial, we wanted to take it in increments,” she said.