Chaney denies Allstate’s rate hike request
JACKSON — State Insurance Commissioner Mike Chaney has rejected Allstate Property and Casualty Insurance Co.’s request for a statewide rate hike of 44 percent.
Chaney said the company failed to justify its rate request and has filed requests for high increases since Hurricane Katrina in 2005, possibly as a way to price itself out of the Mississippi market.
Allstate requested the rate hike in March, after Chaney had rejected the company’s request for a 65 percent increase.
“We have worked very hard, very diligently, very openly and very honestly with Allstate on this rate increase,” Chaney said yesterday. “However, I will not approve a 44 percent rate increase for Allstate without a court order.”
Allstate spokeswoman April Eaton said the company is “disappointed” by Chaney’s decision.
Allstate has 30 days, until Oct. 20, to request a hearing challenging the Department’s denial of the rate increase.
“We believe our rate filing is justified because of the loss we are experiencing, due to the risk present in the state and the increase in claims,” Eaton said. “We are seeing an increased frequency in losses from home fires, home burglaries, water damage and liability claims.”
She said the company must remain in a strong financial position for customers.
Chaney had been reviewing Allstate’s rate request since April. The company asked for an average statewide increase of 44.4 percent several months after Chaney rejected a 65 percent hike.
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