GEICO, State Farm enhance non-public auto charges in June
States employ a variety of rate regulation mechanisms such as prior approval, modified prior approval, file and use, and use and file. The form filing laws govern the type of policy form regulation used by the state and may not require explicit approval by the state regulator prior to using the new rate. This analysis is based on when the rate filing is “disposed” by the state regulator and does not take into account when new rates became effective for new and renewal business. In some instances, the new rate was in effect prior to the particular month the filing has been “disposed” by the regulator.
GEICO Corp. could see the largest aggregate increase in private auto premiums from rate hikes approved in June, according to an S&P Global Market Intelligence analysis.
GEICO received subsidiary regulatory approvals for 27 rate hikes across seven states during the month, which could boost the group’s total premiums by $418.7 million. More than half of that increase is expected to come from Virginia, where regulators signed off on six increases altogether, with two of them making the list of the most impactful changes. Both new rates went into effect on June 16 for new business and have an expected implementation date of Aug. 14 for renewal business.
State Farm continues to boost rates
State Farm, the largest private auto insurer in the US, continued its trend of increasing private auto rates by securing 17 rate hikes in June, which could increase the group’s total premiums by $377.8 million. Five of those rate increases are featured in the list of most notable increases for the month.
United Services Automobile Association, Farmers Insurance Group of Cos. and Liberty Mutual Holding Co. Inc. all received rate-hike approvals which could increase their accumulated premiums by more than $100 million.
Progressive dominates rates cut chart
Subsidiaries of The Progressive Corp. secured approvals for nine rate decreases which could reduce the group’s overall premiums by $13.3 million. Six of these rate cuts were approved in Arkansas, which could lower progressive’s premiums by $7.0 million.