A group of California insurance agents weighs in on the impact of California Insurance Commissioner Lara’s recent auto insurance rate rulings on California consumers.
They don’t like Lara’s car insurance rate moratorium.
“Commissioner Lara’s rate moratorium and refusal to process auto insurance rate claims are reducing options for California consumers and making life more difficult for them,” said Michael D’Arelli, executive director of the American Agent Alliance. “To be clear, no one wants higher insurance premiums, but insurers can only continue to serve consumers if auto insurance rates reflect the true costs incurred by insurers.”
The group believes Lara is missing a reason auto insurers would slow new business submissions by announcing changes to installment plans, advertising and agency appointments.
They say the reason is that Lara no longer reviews auto insurance claims.
“You can’t blame insurers for holding back new business given the current rate deficiency caused by Commissioner Lara’s inaction on rate filings,” D’Arelli added.
He said Lara’s moratorium deprives auto insurers of underwriting certain costs and that triggers decisions by insurers that no one wants.
He urged Lara to resume processing rate filings as soon as possible and allow the auto insurance market to recover.
The California Department of Insurance has been contacted for comment.
The American Agents Alliance is an association of insurance professionals headquartered in Sacramento, California.
California Automotive Agencies
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