State Farm’s request for double-digit insurance rate hike approved by California

California has agreed to request a two -digit in home insurance premiums to help the insurance company to deal with financial challenges after the forest fires that destroyed societies near Los Angeles in January.

On Tuesday, California Insurance Commissioner Ricardo Lara adopted a proposal for the court that allows the state to move forward to increase the temporary insurance rate for 17 % home owners in the state. This is less than the initial demand for the insurance company at a premium altitude by 21.8 %.

According to the request terms, which will receive June 1, a California -based company will receive a $ 400 million pumping of its mother company to ensure its suitability, and will participate in a full hearing at a later time. The insurance company is also prevented from implementing non -renewable programs at the end of this year.

Lara said: “I am balanced among all facts. The protection of all agents of the state farm and the integrity of our insurance market is urgent.”

Victims of hashtaging fires do not receive a helpful plan: “I will have to fight with them during the next three years.”

He added: “Let me be clear: We are in a state insurance crisis, we affect millions of California residents. This requires difficult decisions. This is not a game. This is not a moment that depends on the media to exploit-and this affects the people who are committed to protecting it.”

The state farm state (SFG) said in a statement that the temporary approval of the commissioner’s average is a “critical first step” for the company’s ability to continue customer service in California, adding that “it is still necessary to continue to build enough capital for the future.”

State Farm Executive made comments on a distinct height after California fires

A view of the damaged structures and homes caused by the Bluezades fires in the Pacific Palisades neighborhood in Los Angeles on January 11, 2025. (Axelle/Bauer-Griffin/GC Images/Getty Images)

“Through this temporary approval of the price, SFG will get from its mother company, State Farm Mutual (SFM), which is a progress of $ 400 million under a surplus note issued by SFG, taking into account the organizational approval. It will not be expected to be determined in California.”

He added that it stops not renewing the group for the rest of 2025 for owners of non -tenants, tenants and owners of housing units, in addition to the rented housing real estate.

The state farm requires an increase in the emergency rate that may raise California population installments by 38 %

A view of the beach property of fire overlooking the Pacific Ocean that was burned as a result of the Palisades fire in Malibu, California, on January 12, 2025. (Frederic J. Brown / AFP via Getty Images / Getty Images)

“We are still focusing on helping our customers to recover from forest fires. As of May 12, we have already paid more than 3.51 billion dollars and deal with more than 12,692 claims,” ​​St. State added.

The S& P Global Ratses has reduced the “AA” state -Farm General classification from “AA” to “A+” due to what he called “a significant deterioration in the position of capital and regulatory sheet.” Changing the classification does not affect other subsidiaries of the state.

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