Farmers, Liberty Mutual Poised for Significant Increases In Premium

worldinnews.com - Several insurance companies are expected to enjoy significant increases in premiums as a result of the increases in homeowner's insurance that were approved in the latter half of 2022.

Research conducted by S&P Global Market Intelligence revealed that Liberty Mutual would experience the greatest increase in revenue as a result of these increases, with the approved increases totaling $729.8 million.

Meanwhile, Farmers Insurance came in second, with subsidiaries expected to receive an additional $575 million in premiums in 42 states.

The fee for Liberty Mutual increased, while that for Farmers decreased.

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S&P Global rated some of the largest increases to homeowner's insurance rates as being granted in Texas, where regulators approved increases that would increase Liberty Mutual's rates by 20.8% and Farmers' rates by 9.6%.

Regulators in Texas also approved increases in rates for other major insurance companies, however, the amounts were smaller. USAA was granted the authority to increase its rates by 4.9%, while State Farm and Allstate were granted the authority to increase their rates by 5.1% and 6.2%, respectively.

Liberty Mutual also received permission to increase rates in 12 additional southern states, with the greatest rate increase exceeding 10% in 6 of those states.

The insurance company could expect a total increase of $408.4 million in the region due to a consistent customer base, this increase was calculated by S&P Global.

Another significant increase in the South was Oklahoma, where Farmers is scheduled to increase the rates of homeowners insurance by 41.7% across its business following 11 filings with the state's insurance regulator.

Farmers were also granted permission to increase the rates of homeowners in every Northeastern state, with five states experiencing increases exceeding 20%, while Liberty Mutual was granted permission to increase the rate in between 8% and 12% in four states in the same region.

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Other significant increases for Allstate, USAA

Allstate is expected to have the greatest increase in the Midwest, with a total increase of 17.8% in Illinois. S&P Global said this would increase the company's calculated premiums by $104.6 million based on its current portfolio.

At the same time, USAA was granted permission to increase rates in several Western states, including Nevada, New Mexico, Oregon, Utah, and Washington. The greatest alteration occurred in Arizona, where the total rate increased by 32.1 percent, which resulted in a calculated premium increase of $68.1 million in the state.

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