Allstate gets OK to hike homeowner insurance 6.9% in California - Los Angeles Times

http://www.latimes.com/business/la-fi-briefs6-2009jan06,0,6356876.story

Allstate gets OK to hike homeowner insurance 6.9% in California
The state Insurance Department cites increased losses in approving the change.
January 6, 2009

INSURANCE

Allstate gets OK for 6.9% rate increase

California Insurance Commissioner Steve Poizner has granted a request from Allstate Insurance for a 6.9% increase in its rates for homeowner coverage, according to the state Department of Insurance.

The hike followed by five months an agreement between Allstate, California's third-biggest home insurer, and the commissioner to cut average rates by 28.5%.

"Allstate's losses have increased from prior years, and a new rate was warranted," said department spokesman Darrel Ng.

The rate-increase proposal, which was not subject to a public hearing because it was below a 7% legal threshold, was approved after Poizner allegedly "weakened" rate-setting regulations last spring, charged Douglas Heller, executive director of Consumer Watchdog, a Santa Monica advocacy group.