An insurance agent group in California is opining on the impact of California Insurance Commissioner Lara’s recent auto insurance rate decisions on California consumers.
They do not like Lara’s auto insurance rate moratorium.
“Commissioner Lara’s Rate Moratorium and his refusal to process automobile insurance rate filings is reducing options for California consumers and making their lives more difficult,” stated Michael D’Arelli, executive director of the American Agents Alliance. “To be clear, no one wants higher insurance premiums, however insurers can only continue serving consumers if auto insurance rates reflect the real costs borne by insurers.”
The group believes Lara is overlooking a reason that auto insurers are said to be slowing down new business submissions by announcing changes to installment plans, advertising, and agency appointments.
They say the reason is because Lara is no longer reviewing auto insurance filings.
“You can’t blame insurers for pumping the brakes on new business given the current rate inadequacy caused by Commissioner Lara’s inaction on rate filings,” D’Arelli added.
He said Lara’s moratorium deprives auto insurers of pricing for certain costs and that is triggering decisions by insurers that no one wants.
He urged Lara to resume processing rate filings as soon as possible and allow the automobile insurance market to recover.
The California Department of Insurance has been reached out to for comment.
The American Agents Alliance is an association of insurance professionals headquartered in Sacramento, California.