The Louisiana Insurance Rating Commission has deferred action for at least a month on Allstate Insurance Co.’s request for a 19.9 percent rate hike for homeowners and renters insurance, claiming the company had not proven its need.
The rating commission voted at its meeting June 18 to defer a decision on the $21 million rate increase, asking for more information from the company.
The commission recently negotiated a 12 percent increase in homeowners’ rates for State Farm, based on requests from the governor’s office. A number of the commission members asked for more information from Allstate to justify their request for the increase.
In February, the state’s insurance department agreed to the formation of a new company, Allstate Property & Casualty Co., for new business in the state, particularly along the coast where many consumers can obtain coverage only through the state’s FAIR plan.
Allstate plans to underwrite the consumers coming over from the FAIR plan to provide the right rate for the right risk.
The commission will convene again July 17 to discuss the Allstate request.
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