NU Online News Service, April 13, 11:38 p.m. EDT
Allstate will be charging Mississippi homeowners an average of 19.4 percent more for insurance.
The Mississippi Insurance Department (MID) confirmed Commissioner Mike Chaney approved the increase for Allstate, which originally requested a 65 percent average statewide increase for homeowners' insurance last year.
Chaney denied Allstate's first request and a subsequent request for a 44 percent rate hike. The commissioner said he would not approve the filing without a court order.
The new rate is expected to take effect in June. It marks the end of some contentious haggling over rate increases between Chaney and Allstate.
Chaney accused the insurer of trying to price its way out of Mississippi and said Allstate was asking policyholders to make up for "management mistakes." He added that Allstate's catastrophe model has never been proven to be correct and an actuarial report concluded the insurer was not due for more than an 18 percent increase.
Allstate fired back, saying that another actuarial report commissioned by the MID found that the rate hike was appropriate and reflected Allstate's increase in non-hurricane and non-wind-related claims and claim costs. The insurer requested a hearing, which would have been the first in MID's history on a rate denial.
Chaney could not immediately be reached for comment.
With an 11.8 percent market share, Allstate was the third-largest writer of homeowners' multiperil insurance in Mississippi in 2010, according to Highline Data. State Farm is the largest with 25.5 percent, and Southern Farm Bureau is second with 16.4 percent.
Highline Data is a part of Summit Business Media, which also owns National Underwriter.
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