Nevada Insurance Commissioner Alice Molasky-Arman has denied the request of the Progressive Companies that are marketed through independent agents for a 5.3 percent increase in auto insurance rates. This filing would have reportedly impacted policyholders insured by Progressive Northwestern Insurance Company, Progressive Casualty Insurance Company, Progressive Specialty Insurance Company, and Progressive Preferred Insurance Company.
“The documentation submitted indicates that based on the companies’ past losses and expenses, the rates are substantially adequate,” said Molasky-Arman.
To justify the requested increase, Progressive reportedly assumed the average premiums would continue to decrease, while the losses would continue to increase. Molasky-Arman reportedly rejected the proposed rate increase based on the consistent historical profitability of these companies, coupled with the lack of compelling evidence that the average premium per policy will continue to drop.
Analysis by the Division’s actuaries reportedly suggested the downward premium trend will not continue into the future. The companies can seek reconsideration by filing a request for a hearing, or they can submit new rate filings. The listed Progressive companies insure about 52,000 vehicles in Nevada.
The most recent rate change was a statewide average 1.9 percent increase, effective in January for renewal business.
Topics Trends Auto Pricing Trends
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