State Farm Seeks Approval for Adjusted Emergency Rate Increases in California Wildfire Aftermath

Regulators weigh revised 17% homeowner rate hike as testimony continues in unprecedented public hearing addressing $7 billion wildfire claims.

State Farm has adjusted its emergency rate hike request for homeowners to 17%, down from the initially proposed 22%, citing financial strain from $7 billion in wildfire claims.
The California Department of Insurance is conducting a rare, expedited public hearing, with testimony set to continue through April 9 before an administrative law judge in Oakland.
Consumer Watchdog opposes the rate increases, arguing that State Farm has not provided sufficient data to justify the hikes and should instead seek more support from its parent company.
State Farm has indicated it will seek $400 million in additional funds from its national parent company if the revised rate increases are approved.
Insurance Commissioner Ricardo Lara and regulators are balancing the need to stabilize California's largest insurer with protecting nearly three million policyholders from excessive costs.