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

State Farm seeks approval for significant rate increases to address wildfire losses as regulators demand guarantees on future coverage in California.

State Farm has requested a 22% rate hike for homeowners and varying increases for other property types, citing $7.6 billion in wildfire-related losses.
California Insurance Commissioner Ricardo Lara is expected to decide within two weeks but has expressed concerns about setting a precedent for bypassing formal rate hearings.
State Farm executives stated the company would not resume issuing new policies in California even if the rate increases are approved.
Consumer advocacy group Consumer Watchdog has challenged the request, arguing that State Farm has not provided sufficient financial data to justify the hikes.
Lara is pressing State Farm for guarantees that it will expand coverage in California if the rate hikes are approved, but the company has yet to commit to such assurances.