Commissioner Refuses Allstate’s Proposed 5.9% Rate Hike in Texas

Allstate Texas Lloyds on Aug. 20 announced two filings that would raise its homeowners insurance rates in Texas by 5.9 percent and 2.1 percent, but Texas Insurance Commissioner Mike Geeslin immediately moved to block the increases.

In two orders issued Aug. 20, Geeslin said Allstate’s rates require supervision because of the company’s rating practices.

In Order No. 07-0719, the Commissioner said “Allstate Texas Lloyds filings, separately and in combination, proposed rates that were excessive, inadequate, unreasonable, and/or discriminatory for the risks to which they apply.”

Subsequently, in Commissioner’s Order No. 07-0720, Geeslin said Allstate Texas Lloyds is “required to file with the Commissioner all rates, supplementary rate information, and any supporting information.”

Allstate earlier this year withdrew a proposed 6.9 percent increase when the Texas Department of Insurance indicated that rate hike would not have been approved.

Latest Comments

• August 23, 2007 at 12:15 pm

  Jim says:

  Even though I don't particularly like the fact that the Big 3 have a stronghold on Texas consumers, the TDI should let the market determine the rates. If enough customers get ... read more
• August 23, 2007 at 9:44 am

  Mark says:

  Allstate Lloyds is closed to new business anyway. The new policies are being written in Allstate Fire & Casualty, and those rates are lower than Lloyds. Allstate is trying to ... read more
• August 22, 2007 at 1:38 am

  Gus says:

  Allstate was not the first and won't be the last. When rates are going down is not the time to pop your existing customers with a rate increase. Overall in Texas Fire and Auto... read more