Industry News

California insurer to slash homeowners’ rates

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In the latest action to defend homeowners against excessive insurance rates, California Insurance Commissioner John Garamendi on Thursday announced he will approve an 18 percent decrease in homeowner and renter premium rates by The Hartford Insurance Co. The Hartford, which filed for rate review earlier this year, has worked with the department over the last several months to achieve a rate reduction that reflects its current claims payment experience, Garamendi's office said. Meanwhile, the insurance commissioner on Wednesday ordered four other major insurers to justify their rates. Garamendi ordered State Farm, Allstate, Farmers, and Safeco to prove that their current rates were not excessive. If they fail to provide the necessary proof, rate reductions will be ordered, benefiting more than 4.1 million policyholders served by these companies. "I will determine why up to 70 percent of the hard-earned dollars that consumers pay end up in corporate bank accounts, instead of being used...