One consumer advocacy group is asking state officials to intervene as state farms seek to raise prices in the aftermath of Southern California’s devastating wildfires.
Consumer Watchdog told insurance commissioner Ricardo Lara that “an immediate 22% increase in homeowners’ rates, a 15% increase in renters and condominium owners and a 38% increase in rental housing.” In sought, I sent a pair of letters to insurance committee member Ricardo Lara. The organization said in a news release.
State Farm is trying to charge its customers not because they cannot pay Wildfire claims, but because they want to protect Wall Street’s credit rating.
“However, as the letter states, S&P Global Rate State Farm and its parent company State Farm Mutual have a $194 billion surplus and reserve together. They have an AA valuation, second. “We have a high rating for this,” Consumer WatchDog said.
State Farm said its California subsidiary has already received more than 8,700 claims and has paid more than $1 billion, with “significantly more” payments expected.
“California’s risk is higher, so it’s more insured than its California customers,” the company said in a statement. Rebuild capital. Prices must be matched appropriately with risk. It is the basis of the insurance system. ”
This is not the first time a state farm and other insurer has tried to refusal to raise or fully insured Californians. Even before the fire, Lara said “the state farm general’s latest rate declaration raises serious questions about his financial condition,” he said in a statement in the Los Angeles Times.
“This could impact millions of California consumers and impact the integrity of the housing property insurance market,” Lara added.
However, consumer watchdogs argue that the financial position of state farms can adequately cover the losses of California customers.
“We’re excited to be able to help you get the most out of our business,” said Carmen Barber, Executive Director of Consumer Watchdog. An increase is necessary. ”
Source link
