Listen, I’m not going to defend Allstate in a lot of situations, but this one is pretty easy. If the GA insurance commissioner doesn’t like what Allstate did, how about he work to change GA from a “file and use” state to a “prior approval” state?
Horrible spin here: “This latest increase means Allstate has now bypassed our office to raise overall rates in Georgia by 40% in this calendar year alone,” King said.
No no no. They didn’t “bypass [your] office” at all. They followed the rules.
Pure political posturing. He has the power to pull a CA commissioner and just flat out disapprove filings for political reasons, independent of what the actuaries say. DOI commissioners don’t have to be reasonable. If he does amend or disapprove the filing then Allstate has to refund the difference between the new rates and whatever is approved (I assume that’s what is in the F&U provisions).
apparently the commissioner doesn’t understand inflation impacts insurance companies just as much as voters. Higher salaries, higher costs for running buildings (electricity, etc), and of course much higher auto repair bills as cars are more complicated, parts are subject to supply issues, and always more expensive.
But the recently passed PutInflation Reduction Act will quell the need for those rate increases. All will be well very soon. Wait, what?! Oh, I missed that memo and didn’t read the bill. Sorry, Chief!
Dean Winter: “You’ve faced mayhem in the past, but no one could expect this type in such a nice state. You do your underwriting analysis, actuarial analysis including the latest AI and predictive modeling. Then your legal staff packages everything nice and air-tight. But the Commissioner comes back to you with …. regulatory authority mayhem!”
probably less sabre rattling than cheap political posturing in an election year. Appointed Commissioner replacing indicted elected commissioner who likely wants to keep the job. Needs to show the voters how tough he is. No insurance experience prior to being appointed. Former Police chief, former military.
While Allstate can file the increase, they generally can’t raise rates more than 15% on an individual customer without significant prior notice in which case the customer is free to go shop for a better deal elsewhere. Mr. King needs to understand how the renewal process works in his state.
Loophole? The rule is there for a reason. Now do your job and review the filing, then amend or reject the filing if it’s unmerited.
Listen, I’m not going to defend Allstate in a lot of situations, but this one is pretty easy. If the GA insurance commissioner doesn’t like what Allstate did, how about he work to change GA from a “file and use” state to a “prior approval” state?
Horrible spin here: “This latest increase means Allstate has now bypassed our office to raise overall rates in Georgia by 40% in this calendar year alone,” King said.
No no no. They didn’t “bypass [your] office” at all. They followed the rules.
Pure political posturing. He has the power to pull a CA commissioner and just flat out disapprove filings for political reasons, independent of what the actuaries say. DOI commissioners don’t have to be reasonable. If he does amend or disapprove the filing then Allstate has to refund the difference between the new rates and whatever is approved (I assume that’s what is in the F&U provisions).
apparently the commissioner doesn’t understand inflation impacts insurance companies just as much as voters. Higher salaries, higher costs for running buildings (electricity, etc), and of course much higher auto repair bills as cars are more complicated, parts are subject to supply issues, and always more expensive.
But the recently passed PutInflation Reduction Act will quell the need for those rate increases. All will be well very soon. Wait, what?! Oh, I missed that memo and didn’t read the bill. Sorry, Chief!
Sabre rattling by the commissioner.
Dean Winter: “You’ve faced mayhem in the past, but no one could expect this type in such a nice state. You do your underwriting analysis, actuarial analysis including the latest AI and predictive modeling. Then your legal staff packages everything nice and air-tight. But the Commissioner comes back to you with …. regulatory authority mayhem!”
probably less sabre rattling than cheap political posturing in an election year. Appointed Commissioner replacing indicted elected commissioner who likely wants to keep the job. Needs to show the voters how tough he is. No insurance experience prior to being appointed. Former Police chief, former military.
While Allstate can file the increase, they generally can’t raise rates more than 15% on an individual customer without significant prior notice in which case the customer is free to go shop for a better deal elsewhere. Mr. King needs to understand how the renewal process works in his state.