Allstate Corporation has issued a release that not only details the catastrophe losses it saw in July 2022, but also reveals its plans to raise auto insurance rates in the months to come.
According to the insurer, it saw estimated catastrophe losses of $223 million ($176 million, after tax) for the month of July. That month’s catastrophe losses included 12 “geographically widespread” events which were primarily wind and hail, initially estimated at $233 million. This was partially offset by “favorable reserve reestimates” for prior period events, Allstate said.
The insurer shared in the same release that it will be further raising auto rates.
“Allstate will continue to implement significant rate actions in the second half of 2022 in response to inflationary increases to auto insurance severities,” said Allstate Corporation chief financial officer Mario Rizzo. “During the month of July, the Allstate brand implemented rate increases of 8.9% across 6 locations, resulting in total Allstate brand insurance premium impact of 1.0%.”
Rizzo also explained that since the beginning of 2022, Allstate implemented 64 rate increases averaging about 9.0% across 51 locations.
“Allstate brand implemented auto rate increases totaled $240 million in the month of July, after implementing $1.5 billion in the previous two quarters,” the CFO added.
The statement comes just days after Georgia’s Insurance and Safety Fire Commissioner John F. King issued a release warning the public that Allstate was raising auto insurance rates statewide by 25%. New customers with the insurer would see the new rates by September 12, while the changes will reflect for current customers by October 16 upon renewal.
