In my last post, Determining P&C Insurance Trends, I detailed an easy way for you to figure out the direction of the insurance market. Now I want to give you some very specific information so you can see rate trends based on carrier actual filings.
Auto and home insurance is regulated by each state and as such rate filings must be submitted and approved by each state's department of insurance. In California, all auto insurance carriers were required to become 100% compliant with Proposition 103 Good Driver regulations. Many of these filings are still pending, while a few have been approved and hit the "street" already.
Some of the companies filings are listed below:
Auto Filings
- Fireman's Fund Filed 08/2009 +7% Approved
- Progressive Filed ? +4.7% Approved
- Allied Filed 07/2009 +7% Approved
- Encompass Filed 07/2008 +7% Pending
- Mercury Filed 10/2008 +2% Pending
- Travelers Filed 07/2008 +3% Pending
- Kemper Filed 07/2009 +3% Approved
- Safeco Filed 05/2009 +4% Approved
- Hartford Filed ? +6% Approved
- Allstate Filed ? +4.5% Approved
- Auto Club Filed 10/2009 +5.2% Pending
- Hartford Filed 10/2009 +3% Pending
- Metlife Home Filed 10/2009 -7% Pending
- State Farm Filed 08/2009 +7% Pending
- Fireman's Fund Filed 09/2009 +7% Pending
- Allstate Filed 08/2009 +7% Pending
- Farmers Filed 07/2009 +4% Pending
- Kemper Filed 06/2009 +2.5% Pending
- Nationwide Filed 06/2009 +35% Pending
- Mercury Filed 05/2009 +4% Pending
- Allied Filed 03/2009 +7% Pending
The filings above are just a sample of how the rates are trending and one thing is clear, on balance the direction is upward. There are a number of reasons why we are seeing rates trending up: loss costs are rising, impaired investment income, capital surplus declines, etc.
As I referenced in my last post, the carriers tend to move with a herd mentality. This is very clearly seen in the sample of filings detailed above. My hope is that this information will enlighten you as the independent insurance agent. For those agents who work with a number of the carriers listed, you now have a better idea of what to expect in the near future.
Another great resource that will help you stay informed about issues impacting our industry is the Insurance Information Institute run by Dr. Robert Hartwig. Stay informed for the sake of your agency and the sake of your clients!
Tony Veteto
VP Agency Development
Tague Alliance
tv@taguealliance.com
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