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.
Farmers Insurance Group of Cos. could see the largest aggregate increase in commercial auto premiums from rate hikes in May, according to an S&P Global Market Intelligence analysis.
The third-largest insurer in the commercial auto sector, as of the end of the first quarter, got approval for 13 rate increases in May, which could boost the group's total premiums by $20.9 million.
Two Farmers rate filings, both approved in Texas, featured in the top 10 most-significant rate increases for the month. Those two filings combined account for $15.8 million, or nearly 76%, of the group's calculated premium increase from May rate hikes.
Rates rising in the Lone Star State
The trend of increasing commercial auto continued in Texas as the regulators approved 32 rate hikes in May. All told, those rate increases could boost industrywide premiums by $55.6 million, the largest projected increase for any state for the month.
* Download a template to analyze rate changes for selected entities, state or type of insurance over a selected time period.
* Read about the US P&C insurance market report.
Old Republic tops rate decrease chart
Old Republic International Corp. received approval for what looks to be the single most impactful rate cut in the commercial auto sector for May. The 23.9% rate reduction approved by New Jersey regulators could reduce the group's total premiums by $2.4 million.
This analysis covers 769 commercial auto rate filings disposed in May, of which 389 are expected to increase premiums while 24 could lead to premium declines. The rest are expected to have no impact on calculated premiums.