California Insurance Commissioner Blocks State Farm's Emergency Rate Hike Request

State Farm sought significant increases citing record fire losses, but Commissioner Lara demands more financial transparency.

California Insurance Commissioner Ricardo Lara denied State Farm's request for emergency rate hikes averaging 22% for homeowners, 15% for renters, and 38% for condominium owners.
State Farm argued the rate increases were necessary due to January's Los Angeles County fires, which it described as the costliest in its history.
Lara rejected the proposal, citing insufficient information on the insurer's financial recovery efforts and its parent company's potential support.
An in-person conference between State Farm executives and the California Department of Insurance is scheduled for February 26 in Oakland to address the issue further.
The department reported over 33,700 insurance claims from the fires, with $6.94 billion partially paid for homes and businesses and $73 million for auto claims.