Texas regulators accepted four of the 10 most significant homeowners' insurance rate increases in the US in the fourth quarter of 2023, according to an S&P Global Market Intelligence analysis.

The Lone Star State's regulators cleared 46 rate increases in total during the quarter, with 34 having a double-digit rate change.

State Farm tops rate hike chart

The most impactful rate hike in terms of calculated premium change approved during the quarter was granted by California state regulators to State Farm Mutual Automobile Insurance Co.'s State Farm General Insurance Co. Its request to boost its overall rate by 20% — translating into a calculated premium change of $480.40 million — will impact nearly 2 million policyholders starting March 15, for both new and renewal business.

The second most substantial rate hike was implemented by one of State Farm's subsidiaries in the state of Texas, a 6.1% increase resulting in a calculated premium hike of $165.17 million.

In total, State Farm subsidiaries received approvals for 15 rate increase requests, including six in excess of 10%. The calculated premium change listed for the group's approved rate hikes during the last quarter of 2023 comes to an aggregate total of $968.68 million.

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 business. In some instances, a new rate may have been in effect prior to the month the filing was approved by the regulator.

Liberty Mutual gets big hikes

Multiple homeowners insurers received rate increases in excess of 25% on books of business worth $20 million or more. Liberty Mutual Holding Co. Inc. received such approvals in seven instances, the largest number for any insurer. The group also had the highest number of rate increases approved this quarter at 164. The calculated premium change listed for the approved filings aggregates to about $803.65 million.

– Learn about US Homeowners' insurance rate changes and loss ratios in 2023. – 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 Co. received the largest rate hike in the quarter, on books of business worth $20 million or more. The 53.9% rate increase in Tennessee went into effect on Oct. 17, 2023, for new business and Dec. 17, 2023, for renewal business, affecting more than 12,000 policyholders.