Allstate Insurance to Hike Rates in Ga., Says Insurance Commissioner

Georgia Insurance Commissioner Ralph Hudgens said he is issuing a consumer alert to inform Allstate Property & Casualty Insurance Company policyholders that the insurer has filed an overall statewide automobile rate increase of 25 percent that will be implemented on May 22.

Hudgens warned policyholders that the 25 percent figure is only an average rate change for the entire state, and that many policyholders should be prepared to see a rate change as high as 58.3 percent.

On Monday, Commissioner Hudgens directed Georgia Department of Insurance staff to initiate a professional level examination of the Allstate filing to determine if the rate increase is defendable under state law.

He said if the results of the examination show that the filing cannot adequately support the increase, he intends to take every measure allowed to him by law to protect policyholders.

According to Hudgens, Georgia adopted a “file and use” system in 2008 to promote competition and lower rates among insurance companies and he says this rate appears to promote neither.

The Allstate Group of companies is the second largest automobile policy provider in the state of Georgia. As of Dec. 31, 2015, they held a market share of 11 percent of all Georgia automobile policies.

Hudgens said he is deeply concerned about this filing and the impact it could have on consumers.

He went on to say that Georgia law prohibits him from stopping or delaying this increase unless an actuarial examination proves the rate to be legally excessive.

The Georgia Department of Insurance recommended that policyholders discuss the reasons for the increase and options available to them with Allstate.