Sacramento, CA – On Tuesday, April 8, at 10:00 AM, Consumer Watchdog will be presenting its case at the California Department of Insurance against State Farm’s unprecedented request for an “emergency” rate hike. Consumer Watchdog opposes the request because State Farm has failed to provide data and documents proving it needs the money – and is trying to avoid the thorough public review required by Proposition 103. The original request for a $921 million rate hike – estimated to boost homeowners’ premiums by $600 a year – called for a 21.8% increase for homeowners, a 15% increase for condo owners and renters, and a 38 % for landlords’ rental dwelling coverage. Four days before the hearing, State Farm and the Department of Insurance proposed reducing the homeowners increase to 17% that would cost an average $468/year per homeowner.
WHERE: Department of Insurance
1901 Harrison Street, 3rd Floor
Oakland, CA 94612
WHEN: Tuesday, April 8, 10:00 AM
The hearing is expected to last several days
LIVE STREAMING: https://www.youtube.com/@cdiahb3069/streams
COURT ORDER ON MEDIA PARTICIPATION: https://consumerwatchdog.org/wp-content/uploads/2025/04/COURTROOM-MANAGEMENT-ORDER-FOR-APRIL-8-2025.pdf
Attorneys, actuaries and other expert witnesses for Consumer Watchdog, the California Department of Insurance, and State Farm General will present their case in front of an Administrative Law Judge who will preside over the hearing.
Consumer Watchdog will be presenting evidence that:
- State Farm has failed to provide the minimum data required by law to show the need for an increase – including basic information on how much it has paid in claims;
- State Farm is improperly leveraging the financial impact of the L.A. Fires to come up with its rate;
- State Farm’s purchase of reinsurance from its parent company sent three billion dollars out of state in a transaction that did not benefit California policyholders from 2015-2024;
- State Farm should turn to its parent company, not California policyholders, for financial support.
California insurance regulations under Proposition 103 require a public rate hearing when an insurance company has failed to justify a requested rate increase to the Department of Insurance, or to consumer representatives in certain circumstances. An insurance company is entitled to an “emergency interim” rate, as State Farm requests, only if it can show its rates are “plainly invalid” – and the company has not done so.
Copies of documents filed in the case can be found here, including Consumer Watchdog’s objections and the declaration of Consumer Watchdog’s actuary.
