State Farm subsidiaries in multiple states accounted for 7 of the top 10 personal auto insurance premium hikes in Q2, according to an S&P Global Market Intelligence analysis.
State Farm and its subsidiaries secured 42 rate increases during the quarter. State Farm Indemnity Co. received approval for a 23.1% rate hike in New Jersey, resulting in a premium change of $196.1 mn, the second highest for the period.
Other notable increases included 13.8% in Washington, 11.5% in Maryland, 10.3% in South Carolina, 9.3% in Virginia, 5.8% in Illinois, and 5.3% in Georgia.

Interinsurance Exchange of the Automobile Club, part of Auto Club Exchange Group, saw the largest premium increase, at $225.1 mn, following a 6.9% rate hike. This change, which took effect on August 1, impacted about 1.5 million policyholders.

Allstate and Liberty Mutual also had significant increases. Allstate reported a 15.8% hike in Georgia, resulting in a $179.9 mn premium change.
Liberty Mutual secured a 25% rate increase in California, leading to a $137.6 mn premium change.
Among the 15 states that implemented 24 rate increases of 20% or more for business portfolios worth at least $20 mn, California led with five approvals. Connecticut followed with four, while no other state approved more than two.
CSAA Affinity Insurance had the highest percentage rate increase with a 40% hike in California, impacting nearly 25,000 policyholders and resulting in a $23 mn premium change.

Loya Insurance, based in Texas, received approval for a 33.8% increase in Nevada, the second-highest percentage hike in Q2. Liberty Mutual also saw six rate increases of over 20%, with the largest being the 25% increase in California.
by Malik Ozair Zafar – S&P Global Market Intelligence