California's largest home insurer to hike rates this year [View all]
California’s largest home insurer will raise rates by a average of 20% this year.
The California Department of Insurance approved State Farm’s request to increase rates for policies that are being renewed, a State Farm spokesperson confirmed. The new rates take effect March 15.
“These rate changes are driven by increased costs and risk, and are necessary for State Farm Mutual Automobile Insurance Company and State Farm General Insurance Company to deliver on the promises the companies make,” according to a State Farm statement regarding the increase.
Amy Bach, executive director of the consumer advocacy group United Policyholders, noted that the 20% change is a statewide average, meaning some people will see increases that are greater, and some less.
LINK (paywall): https://www.sfchronicle.com/california/article/home-insurance-state-farm-18585872.php
According to the link:
• State Farm stopped writing new California homeowner policies last May, a move the company attributed to wildfire risks, increasing construction costs and challenges with reinsurance.
• At 8.7% (as of 2022), State Farm held the largest market share in the state for property and casualty insurance.
• Farmers Insurance Company is second in terms of market share, and put a cap on new homeowners insurance policies in 2023.
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Yeah, there are risks, but there are also shareholder dividends to protect.
Climate change and capitalism do not mix.
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