Louisiana Insurance Commissioner Jim Donelon has denied a request by State Farm, the state’s largest home insurer, for an average 19.1% rate hike. He explained that “after an extensive review of the filing and consideration of multiple factors including data provided by State Farm, the rate revision was determined to be unreasonable.”
He cited concerns that the model used projected hurricane loss provisions 150% higher than projected hurricane loss provisions produced by the two other industry hurricane models utilized by State Farm in this filing.
State Farm says it will continue conversations with the Department of Insurance.
“Louisiana Rejects State Farm Home Insurance Rate Hike Request” (via P&C National Underwriter).