Allstate secures notable homeowners rate increases in Q4

Allstate secured three of the 10 most notable calculated premium changes by US homeowners insurers in the fourth quarter, according to an S&P Global Market Intelligence analysis.

The most significant of Allstate's rate changes was secured by subsidiary Allstate Vehicle & Ppty Insurance Co. with an 11.9% increase in New York, leading to a calculated premium change of $48.2 million. The rate change took effect Dec. 18, 2023, for new business and Feb. 6, 2024, for renewal businesses and affects close to 241,000 policyholders. The same subsidiary also secured the seventh most notable rate hike of 12.9%, resulting in a calculated premium change of $40.1 million, reported to be affecting just under 119,000 policyholders.

The most impactful rate increase on the list was by Homeowners of America Insurance Co. in Texas: an 18.1% rate increase that led to a calculated premium change of $71.3 million. The rate change took effect Feb. 15 for new business and March 15 for renewal business, impacting just over 160,000 policyholders.

The second-most substantial rate increase of this analysis was implemented by the United Services Automobile Association unit USAA Casualty Insurance Co.: a 25.9% rate hike granted by California, resulting in a calculated premium change of $60.7 million. This rate change will go into effect in February this year for new and renewal businesses.

California also granted two other notable rate increases within this analysis: a 6.2% increase to Interinsurance Exchange of the Automobile Club and a 16.8% increase to United Services Automobile Association.

All figures listed are based on as-reported numbers filed in the rate filings of each subsidiary in each state. The calculated premium change is not a final projection of the additional premium the insurer may receive in the upcoming year. The calculated premium change is reported by each insurer to reflect the most impactful premium changes based on the combined impact of the percentage change and the amount of business it affects. Changes to the insurer's policy mix or policies in force are not factored into the analysis.

US states employ a variety of rate regulation mechanisms, including prior approval, modified prior approval, file and use as well as use and file. Some states do not require explicit regulatory approval prior to insurers using new rates.

This analysis is based on when rate filings are "disposed" by state regulators and does not take into account when those new rates became effective for new and renewal businesses. In some instances, a new rate may have been in effect prior to the month the filing was approved by the regulator.

American Family, Allstate continue to raise rates

Multiple homeowners insurers received rate increases of 20% or more on books of business of at least $20 million in the last quarter of 2024.

American Family Insurance Group, which is out front among the largest homeowner insurers in the US with rate filings approved through Dec. 27, 2024, also had the third-highest number of rate increases approved at 50, after The Allstate Corp. and Liberty Mutual Holding Co. Inc., which had 83 and 57 approved rate increases, respectively. The calculated premium change listed for Allstate's approved filings aggregates to about $318.7 million, the largest of the quarter, followed by American Family at $238.7 million.

American Family's 30% rate increase in Arizona was the fourth-highest on the list, translating into a calculated premium change of $23.3 million and is reported to impact a few hundred short of 43,000 policyholders.

– Learn about US homeowners' insurance rate changes over the last five years. – Download a template to analyze rate changes for selected entities, states or type of insurance over a selected period.

Rock Ridge Insurance Co., a subsidiary of Clear Blue Insurance, received the largest rate change of the fourth quarter, among the subset of filings reviewed. The 48.4% rate hike implemented in Kansas went into effect Dec. 11, 2024, for new business and Jan. 1, 2025, for renewal business, affecting a little over 6,000 policyholders.