Allstate Sees No Need for Big Homeowners Rate Increases

By | February 6, 2014

  • February 6, 2014 at 2:00 pm
    jtownagent says:
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    Interesting; $1 billion of new capital from the sale of Lincoln benefits. Didn’t they just pay $1 billion for e-surance? A billion here, a billion there…pretty soon your talking about real money.

    It is also curious to me that Allstate continues to be a significant competitor in the coastal market for homes and dwelling fire. My experience is that Allstate is under charging for the coastal risk, while using a replacement cost matrix about 33% lower than my I/A companies. It seems like this has got to catch up with them some day, but it has been a long time that they have been the low cost provider in my area.

    • February 6, 2014 at 2:20 pm
      Agent says:
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      I wonder if this article was written by Mayhem. I wonder why this article when they just “applied for” nearly a double digit rate increase in Texas. I am sure their Texas Homeowner customers will not be amused.

      • February 7, 2014 at 10:03 am
        Agent says:
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        They have been undervaluing homes for a long time in our area and calling it Replacement Cost. One of the hardest sells we have is convincing a potential customer that our values are correct and theirs aren’t. On a typical average brick veneer home, they are often off by up to $50,000 on the valuation and the Personal Property is too low as a result as well.

  • February 6, 2014 at 5:08 pm
    Until they do says:
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    “…without the need for “abnormally large” rate increases…”. We will just see about that!

    • February 7, 2014 at 10:04 am
      Agent says:
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      Higher premiums for less coverage. What a deal!

  • February 7, 2014 at 7:26 pm
    ron l says:
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    why did my home go up over$200.00

  • February 10, 2014 at 7:51 am
    gerard says:
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    Allstate “abnormally” increased premiums on its policyholders and came in with a tremendous 4th quarter profit. Sounds suspiciously like price-gouging. Are there any government regulations to prevent this larceny? Shouldn’t Allstate have to lower premiums now or provide substantially more coverage since this gouging?

    Big Insurance is an industry running amuck!

    • February 10, 2014 at 2:42 pm
      Agent says:
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      The industry as a whole had a great year with Combined L/R around 97%. They are taking rate like they had huge losses. They try to justify that they are doing it for “expected losses” and have to strengthen reserves. Hard to do in a lousy economy. Consumers are getting hosed by government and insurance companies. What is the breaking point?



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