Mercury Insurance said it has submitted filing on the basis of the new California rules, which enables destructive modeling that can be added as a rate -making factor.
The alleged filing of the Filling Verk Wild Fire is the first to use the destructive model, designed to help assess the effects of future destructive forest fire events.
The Virksk Wild Fire model for the United States was reviewed by the procedure for the pre -requested information committed. The California Department of Insurance and Verksk announced a review of the model that was completed in late July.
The CDI also recently completed a review of the KCCUS Wild Fire Reference Model Version 3.0, which made it the state’s second wildfire destructive model.
According to the company, once the approval, Mercury will allow the filing carrier to increase its footprints in high -risk areas of forest fire.
The overall average rate in the rate of filing has been demanded 6.9 %, which the company has said that the cost of inflation reflects the increase in the cost of inflation and the exposure to destructive events such as forest fire.
According to Mercury, the rate hike in all policy holders will not be allocated equally, residents are likely to increase in high -risk areas and consumers may be seen decreasing in low -risk areas.
Mercury has also increased the existing discounts for homeowners who take steps to reduce the risk of forest fire, such as cleaning plants, upgrading vents or using fire -avoiding construction equipment.
The lack of rising rates and availability has put the state in the insurance crisis of homeowners, which has led to the last rescue, the California festival’s plans and the insurer of the surplus lines. According to new data from the California surplus line association, the first half of the year’s insurance transaction increased by 119 % in the first half of the year.
The pain that has suffered on the California property market has increased permanently over the past few years following the destructive seasons of forest fire. Following this trend, many carriers have been withdrawing from writing new policies in the state and increasing massive rates.
La Wild Fire worsened things. More than 16,000 structures were destroyed and 30 people were killed. About $ 30 and 35 billion are insured from the LA Wild Fire.
Several major carriers, including state farm, allstate, farmers and mercury, paid more than $ 1 billion claims from forest fire. One of these companies is the State Farm, which is reported to have received 12,855 total claims of fire by mid -June and has paid more than $ 3.96 billion.
The State Farm, which insures domestic owners in California’s approximately one -five, has called for a large rate increase in a large rate basis based on the mass loss of carrier.
The carrier increased its rate application in May, after a week, what the company actually wanted before the company was rejected and agreed to an interim agreement to increase it. The Los Angeles Wildfire has approved the loss of billions of dollars in losses and writing new policies in the state after a bridge backback, the forest fire insurance company has been approved to increase the rate of 17 %.
According to a climate worker group report, the increase in the state farm rate will cost more than $ 1000 owners in California. An analysis of the Center for Climate integrity states that if an additional increase has been approved, on average California policy holder will pay 0 1,015 more for the insurance of home owners in 2026 in 2026.
Destructive models are accepted as part of writ making in all states. The Wild Wild Fire model has already been approved by the Nevada Division of Insurance.
According to a Boston -based firm, the KCC Wildfire model has already been accepted for rate filing in 24 other states. The firm said that the KCC model includes the effects of climate change and is calculated on property and social level efforts to encourage the risk of forest fire.
In exchange for modeling in rates, insurance companies will need to write more policies in forest fire areas.
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