Allstate seeks 14% rollback: Request falls short of state estimates

TALLAHASSEE, Fla. – March 13, 2007 – Allstate Floridian Insurance Co., the state’s third-largest home insurer, wants to cut its property insurance rates by an average of 14 percent statewide. But Allstate Floridian’s proposed premium cuts are far less than the estimated reduction of 24 percent Insurance Commissioner Kevin McCarty said recently that the state’s property insurers should be able to shave rates.

Allstate Floridian will have to justify why the decrease it plans – and the proposed 13 percent decrease by its subsidiary, Allstate Floridian Indemnity Co. – is lower than the state’s estimate. Company spokesman Adam Shores said Monday the figures are based on Allstate Floridian’s risk exposure, and “given the state of the overall [insurance] market, we feel that this is the appropriate rate which will help us move forward.”

County estimates of Allstate Floridian’s rate decrease weren’t available Monday. With its rate request filed, Allstate Floridian – the state’s third-largest insurance company – is now free to proceed with plans to drop 106,000 home and condo customers and offer them coverage with a new insurer, Ormond Beach-based Royal Palm Insurance Co.