• This analysis by S&P Global Market Intelligence is limited to publicly available rate filings submitted to state insurance regulators.
• Rate filing information is sourced from the System for Electronic Rate and Form Filing documents.
• 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 state regulatory prior to using the new rate.
• This analysis is based on when rate filings are "disposed" by the state regulator and does not take into account when new rates became effective for new and renewal business. In some instances, new rates have been in effect prior to the particular month the filings were "disposed" by the regulator.
The Allstate Corp. could see the largest cumulative increase in premiums from private auto insurance rate hikes approved in April, according to an analysis by S&P Global Market Intelligence.
Regulators across 13 states approved 22 rate increase for Allstate which, when combined, could potentially bolster the group's calculated premiums by nearly $195 million.
GEICO Corp. is expected to garner the second-largest aggregate premium increase from April rate increases thanks to 10 hikes in the month. Those increases are expected to boost GEICO's private auto premiums by $193.4 million. The bulk of the additional premium will come from Georgia and Arizona, which stand to see premium increases of $119.7 million and $58.5 million, respectively.
State Farm's big Louisiana hike
State Farm Mutual Automobile Insurance Co., the largest private auto insurance underwriter in the U.S., received the most-impactful single rate increase during the month of April. A 7.2% rate hike in Louisiana, which will impact roughly 1 million policyholders, stands to boost the company's premiums by $95.3 million.
Pioneer State tops rate cut chart
At the other end of the spectrum, Pioneer State Mutual Insurance Co. received approval from Michigan's regulator for the most-significant rate decrease in April. The 4.7% rate cut could lower the company's total premiums by $5.6 million. The decrease will affect nearly 61,000 policyholders starting July 1, for both new and renewal business.