The State of Ohio just rejected a 3% rate increase proposed by Allstate because
the Insurer "was unable to produce convincing evidence to justify the rate
increase.".
Regulators said they only recall two or three times in the past eight years
that an insurer has been unable to support a proposed rate increase.
Ohio has the 44th lowest auto insurance rate in the country; and if Allstate cannot
produce proper data for a 3% rate increase in that state, other NAIC state
commissioners should start questioning rate increase validity and actuarial
data in an effort to protect consumers.
Allstates last rate increase was based on company indicated numbers and simply
because they could. If we all begin contacting our state representatives and
insurance commissioners and urge them to look at the indicators, insurer rate increase
activity may slow down.
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