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.
According to a press release from the company, state farms have not been able to collect enough premium dollars to catch up with new claims because they have been humidly low in the past few years. 。
“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, the director of the non -profit organization of the US Consumer Federation, told USA TODAY that the state farm is “very useful in California in 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.
Los Angelel Sthams reported in the fall that the state farm was accused of raising the interests of the parent company, but 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 included a 30 % premium hiking of homework insurance, as 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.”
As of January 30, the State Insurance Bureau has paid $ 4.2 billion in the Los Angeles mountain fire.
