The State Farm claimed that in California, the average house insurance fee was raised by 22 % to California to the potential “disastrous situation” associated with the devastating Los Angeles. I asked if I could deal with it.
The insurance company claimed that after receiving almost 9,000 claims, it paid more than $ 1 billion to California's insurance policyholders affected by the wildfire.
In the past few years, the premium has been artificially low, and the state farm said that in the meantime, he cannot collect sufficient insurance premiums to catch up with a new claim. press release From the company.
“California's customers will be more risky in California, so they will be more expensive for their future customers,” said the state farm.
“The higher risk should be more insurance than the lower risks. In the past nine years, the lack of consistency between prices and risk is 1.26 for the state farm general for every $ 1.00 collected in the premium. It means that you spend more than $ 5 billion in cumulative underwriting. ”
Nevertheless, many consumers are wary of the theoretical evidence of the state farm to raise the required rates.
DOUG HELLER, insurance director of non -profit organizations of the US Consumer Federation, I told usa today The state farm was “very useful in California for the past few years.”
“They have built an incredible property to cope with the crisis. If they feel that they need hiking in the future, they have the right to go through the process, but urgent siren. Is to bully the state while we are trying to do it.
In the state farm, California was the second largest state with a written premium dollar in 2023, and the loss was lower than the industry average.
State farm has a history of trying to make suspicious movements in California during difficult times.
Reported by Los Angelel Sthams In the fall, the state farm was accused of raising the profits of the parent company and at the same time trying to assert financial distress. At that time, California policies called for 30 % rate hiking.
Even in June last year, the state farm demanded “rescue” three times in California to reduce the burden on the standard price setting process of the state.
In this demand, the state farm has adopted a legal process called “distributed”, which is often used when the insurance company thinks that the ability to repay his sorvency or debt is threatened. This includes a 30 % premium hiking of homework insurance. Reported by Insurance Journal.
“The State Farm General's fare declaration proposes a serious question about the financial status,” said the California Insurance Bureau's spokeswoman Gabriel Sanchez.
“In order to protect millions of California consumers and housing property insurance markets, the department responds with urgency and transparency and recommends Lara's action policy.”
The State Insurance Ministry is showing that 10.2 billion claims As of January 30, it is paid related to the mountain fire in the Los Angeles area.
