Miss. denies Allstate request for a 65 percent rate hike statewide; Allstate ‘disappointed’

Miss. denies Allstate bid for 65 percent rate hike

JACKSON, Miss. — Mississippi officials have rejected a request from AllState Property and Casualty Insurance Co. to more than double insurance rates for 51,000 homes statewide.

Mississippi Insurance Commissioner Mike Chaney sent the rejection order Thursday after specialists reviewed the request and found a 65 percent increase was not justified, said Mark Haire, deputy insurance commissioner.

“They filed for a 59 percent increase to the base rate, but the total rate level impact, as listed in their filing, is 65.1 percent,” Haire said.

Allstate Property and Casualty, based in Northbrook, Ill., has the option of having a hearing on the matter or filing a new request for a lower increase, Haire said.

Allstate spokeswoman April Eaton did not say what the company plans to do in a telephone interview Thursday.

“We’re certainly disappointed with the decision that was made,” she said. “Allstate is committed to a healthy insurance market in Mississippi, one in which consumers have access to high quality insurance that reflects the risks facing the state at the most affordable price possible.”

Allstate asked for the increase last October to cover costs associated with more frequent claims from fires, burglaries, water damage and liability, Eaton said.

“We will continue to work with the Mississippi insurance commissioner and his staff to find solutions,” she said.

Insurers in Mississippi are regulated by the insurance department, which is headed by an elected commissioner. Chaney is a Republican in his first term.

He also recently rejected a request by State Farm Fire & Casualty Co. to increase rates on the Mississippi Gulf Coast by 45 percent. He did, however, allow the company to increase rates 19.5 percent for Harrison, Jackson and Hancock counties, Mississippi southernmost counties.