State Farm Florida Ins. Co. has received a statewide average 52.7 percent rate increase after its data agreed with the state's Office of Insurance Regulation and the Florida Public Hurricane Model. The carrier had initially filed two rate filings calling for a total overall increase 71.5 percent, which were previously rejected by Insurance Commissioner Kevin McCarty.

In May, State Farm submitted two rate filings to regulators equaling a combined increase of 71.5 percent. The statewide increases called for a 58.8 percent increase to cover reinsurance costs and 12.7 percent to cover overall operating costs associated with the expense of handling large numbers of hurricane claims. If approved, the rates would have substantially increased policyholders' premiums in coastal areas. In Charlotte County the average rates would have increased by 117.3 percent while a $1,500 annual premium in Sarasota could have risen to over $3,000. “Any of the areas that are closer to the coast are affected typically because of their high exposure to wind and storms,” said State Farm spokesperson Michal Shanley.

Upon review, regulators informed State Farm that the rate increases were unsupported and, therefore, would be rejected. In response, State Farm withdrew one filing and lowered the other to an average increase of 52.7 percent. The amended filing was improved in part when the company's data was verified by the state's new Florida Public Hurricane Model.