NU Online News Service, Dec. 16, 3:09 p.m.EST

The frequency of claims arising from wind and hail in Texas hasprompted two Allstate Insurance companies to ask regulators forrate increases.

Allstate Texas Lloyds is asking for a 5.4 percent rate increase.Allstate Fire and Casualty Insurance Company filed to raise rates9.7 percent.

Allstate spokeswoman Kristen Beaman said loss costs haveoutpaced premiums, as the price of constructionmaterials–especially for roofing–and labor have increased.

Actuaries at the Texas Department of Insurance (TDI) arecurrently reviewing the filing, said spokesman Jerry Hagins. Thestate has a file-and-use rating system but regulators can orderrefunds if they deem rate increases too high.

On Jan. 19 State Farm Lloyds will meet with regulators in frontof a judge to explain why it should not refund $310 million topolicyholders as was ordered by Insurance Commissioner Mike Geeslinlate in 2009.

The commissioner said the state's largest homeowners insurer hasbeen overcharging customers since 2003. TDI and State Farm havebeen at odds over rate increases for seven years.

TDI continues to review a July 2009, State Farm Lloyds filingfor an 8.8 percent increase in its homeowners premium rates andanother filing for a rate increase of 4.5 percent made inMarch.

The insurer and TDI have sparred in court over the rate hikes.At one point Commissioner Geeslin attempted to hold State Farm toprior approval for rate increases.

State Farm has said it owes no refunds. The insurer has likenedthe refund order to the losses the company incurred from HurricaneIke in 2008.

According to Highline Data, State Farm andAllstate ranked first and third in 2009 among writers of homeownersmultiperil insurance in Texas, with market shares of 29 percent and13.1 percent, respectively. Zurich Insurance Group is second with13.6 percent of the market.

Highline Data is part of Summit Business Media, which includesNational Underwriter.