Auto insurance

Gradual, The Hartford raises commercial auto insurance rates in April

• This analysis by S&P Global Market Intelligence is limited to publicly available rate filings submitted to state insurance regulators.
• Tariff filing information is obtained from the Electronic Tariff and Forms Filing System.
• States employ a variety of rate regulation mechanisms such as pre-approval, modified pre-approval, deposit and use, and use and deposit. Forms filing laws govern the type of policy form regulation used by the state and may not require explicit approval from the regulator before using new rates.
• Analysis is based on when a rate case is “eliminated” by the state regulator and does not take into account when the new rate went into effect for new and renewal business. In some cases, the new rate was in effect prior to the particular month the deposit was “eliminated” by the regulator.

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According to an analysis by S&P Global Market Intelligence, The Progressive Corp. could see the largest cumulative increase in commercial auto premiums from rate hikes approved in April.

The group is expected to record a premium increase of $101.2 million from seven rate hike requests approved by regulators in five states.

Two progressive rate filings entered the top 10 largest increases for April. Of the two filings, the larger in terms of impact on premiums is the 11% rate hike approved in Texas, which will affect nearly 105,000 policyholders. That rate increase alone could add $91.9 million to the group’s cumulative premiums.

Hartford Financial Services Group Inc. is expected to see the second-largest cumulative increase in commercial auto premiums after winning approvals for 28 rate hikes that could boost the company’s total premiums by about $7.5 million.

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Rates rise in the Lone Star State

A total of 15 rate hikes approved in Texas could lead to the biggest change in total statewide premiums at $96.8 million. This figure represents 55.3% of the total premium increase calculated from rate increases approved across the United States in April.

Mid-Atlantic rate increases approved by New York state regulator could boost commercial auto premiums of $13.7 million statewide.

Penn National Insurance highest rate decline graph

At the other end of the spectrum, approved rate cut requests for Pennsylvania National Mutual Casualty Insurance Co. and its subsidiary could result in the largest cumulative premium decline for the month of April. Penn National Insurance units have been approved for three rate reductions in Pennsylvania and Maryland which, when combined, are expected to reduce the group’s calculated premiums by approximately $941,000 and $189,000 in those respective states.

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