Homeowners Insurance

2017-2018 Rate Updates Proposed for Allstate Insurance Company, Employers Mutual Casualty Company and MetLife in Arkansas

Three home insurance companies—Metlife, Allstate, and Employers Mutual Casualty—have been approved for rate changes in Arkansas. The companies are some of the biggest companies in the state.

Allstate Insurance Company rate increases approved

Allstate has been approved for rate increases averaging 1.8% for the Allstate Insurance Company Owners (AICO) in Arkansas. Current policyholders who choose to renew will be affected on or after December 14, 2017. The changes will affect AICO customers who have Deluxe Homeowners and Deluxe Homeowners Plus policies with the company. The Allstate Insurance Company Owners program will not be accepting new business in Arkansas. The state has some of the highest cost for home insurance in the U.S.

Over 6,000 policyholders will be affected by the changes. The increases will vary for customers. Some may see a small increase of 1.3% while others may have larger increases of around 3.3%. The company states in its filing that approximately 95 policyholders will have the smallest increases, ranging from 1% to 1.5%. The majority—around 6,000—will see an increase of 1.5% to 2%. Around 290 policyholders will see the largest increases, ranging from 2% to 3.3%.

Employers Mutual Casualty Company policy changes

Employers Mutual Casualty (EMC) filed for rate updates for its customers with MyHome policies. In the filing, EMC explains that changes are based on their analysis, which shows that they're undepriced compared to competitors, and have suffered higher losses than anticipated in the recent years. If not approved, EMC would cut back business in the state, or make their underwriting guidelines tighter.

The rate changes average 19.8% across the MyHome policies in scope. However, the increases range from 2.8% to 38.1%. In order to better understand the distribution of the rates, the table below breaks down the amount of policies affected by the different rate increases.

Rate change ranges (%)Policy count% of total
0% to 4.9%20.5%
5% to 9.9%320.9%
10% to 14.9%39210.6%
15% to 19.9%188150.7%
20% to 24.9%108529.3%
25% to 29.9%2797.5%
30% to 34.9%330.9%
35% or more50.1%

In the same rate filing, EMC added a clarification to the eligibility for credits for homeowners' renovations. Policyholders will have to fill out and submit a "Renovated Dwelling Credit Supplement" along with their application. These credits would typically apply to homeowners insurance policies with renovated plumbing, electrical, and/or heating systems in homes, and can be combined. If approved, total discounts (for the renovations and the age of the home) cannot exceed the discount given for a new home.

The company has also updated its list of businesses that are ineligible for a business home insurance policy. Antique dealers and bed and breakfasts now join a long list of ineligible businesses, which include auto dealers, day care operations, bakeries and exterminators.

Approved rate changes for Metlife Insurance Company

Metlife and its affiliate company, Metropolitan Property and Casualty Company, have been approved for rate changes in the state of Arkansas. New policyholders will be affected by the increases starting on November 1, 2017. Current policyholders who choose to renew will be affected starting December 6, 2017. The table below summarizes the changes for both companies. While Economy Premier Assurance Company had 258 policyholders in scope, no rate change impact was reported as approved.

CompanyAffected policyholdersOverall rate impact (%)Minimum change (%)Maximum change (%)
Metropolitan Property and Casualty Insurance Company6,8929.5%0.0%12.0%
Economy Premier Assurance Company2580.0%0.0%0.0%

In its filing, Metlife broke down how customers will be affected. It states that a little less than 40% of policyholders will have rate changes of 0% to 10%. Around 60% of policyholders will see an increase of 10.1% to 15%. The biggest rate increases—averaging 15.1% to 20%—will affect less than 5% of policyholders.

Rate impacts for the top home insurance companies in Arkansas

Nine of the top 12 companies have filed for rate changes this year. The biggest rate change was filed by Nationwide, a 9.7% increase on average for its policyholders. Of the companies listed in this article, only Allstate ranks in the top 12.

Allstate ranks fourth in the Arkansas home insurance market. As of 2016, it had $73 million direct written premiums. In comparison, State Farm Group—the leader for home insurance—has around $230 million direct written premiums.

Katherine Ross

Katherine is a former Editorial Associate at ValuePenguin.