You are currently viewing Press Release: Expedited & Fast Track Rate Filing Review Necessary for Personal Lines Insurance

Press Release: Expedited & Fast Track Rate Filing Review Necessary for Personal Lines Insurance


Dear Commissioner Lara:

Since 1962, we have represented thousands of independent insurance agents in California, and today our members serve hundreds of thousands of California consumers. As insurance agents, we work directly with consumers every day to find the best combination of coverage and cost, and many of these consumers are struggling economically. We are well-situated to speak on the current state of the industry and the impact of your decisions on California consumers.

The automobile insurance market is in turmoil. Our agents and the consumers we serve are losing access to insurance markets as insurers terminate agency appointments and restrict the submission of business. While the California Department of Insurance (CDI) did resume processing rate increase requests six months ago, the damage done by not approving rate increases over the past couple of years is now being felt. If insurers believed they are permitted to charge adequate rates, they would be fully open. However, that is not the case. We believe the California law that forces auto insurers to sell to all “good drivers” -even if their approved rates are inadequate–is forcing this new market behavior.

While a thorough rate approval process is necessary, urgency should now be a priority to accelerate recovery from this destabilized market. Insurers are continuing to receive months of questions from CD staff and, for large carriers, questions from “intervenors,” as if time is not of the essence. We would not be in this dire situation if the CDI had processed auto rate filings during 2022- instead of making blanket assertions that insurers made “excess” profits due to reduced driving during the depths of the COVID pandemic, while not even providing individual insurers that disagreed a method of disproving the assertion.

“The CDI cannot continue with a business-as-usual approach, processing rate filings as if everything is fine, because it is not.” — Michael D’Arelli

The CDI cannot continue with a business-as-usual approach, processing rate filings as if everything is fine because it is not. The logjam of personal automobile rate filings is also delaying much needed homeowners and commercial insurance rate filing review. State Farm’s recent announcement that it will no longer sell to new customers seems like a clear sign that more bad news is coming for California consumers.

The CDI should treat this crisis with the seriousness it deserves by establishing an expedited and fast-track rate approval process to accelerate the return to a competitive marketplace for agents and consumers.

We would be happy to discuss this further at your convenience.

Executive Director

cc: California Governor Gavin Newsom, State Senate & Assembly Insurance Committee Members

About the American Agents Alliance:
Since 1962, the American Agents Alliance has been a member-driven association of insurance professionals and their industry partners. Headquartered in Sacramento, California, the Alliance provides its members with advocacy, education, networking, and a variety of business and professional development tools.

This Post Has 13 Comments

  1. Bryan Del Biaggio

    Excellent however long overdue! This has been an issue for years and now State Farm news last week, all of a sudden everyone, only now starts posting problems.

  2. Ingrid Bedrosian

    Thank you Thank you and Thank you. As an independent agent it has been a great struggle to help my existing and new clients as they need help. I emailed DOI and spoke with a representative at DOI he suggested some links which when you click on it indicates they do not do business in California. Greatly appreciate your letter

  3. Ruben Davis

    This crisis needs to be answered ASAP. My client’s do not want to wait 20 days for an auto quote.

  4. Victor Smadi

    The CDI is driving away good insurance companies and allowing scrupulous MGAs to manipulate the consumers and the insurance brokers .
    I’ve always assumed the job of the CDI is to assure harmonic and fair trade in the insurance industry, now I know for sure that the CDI has deviated from the purpose it was created for all because of one person need to be noticed.


    Yes, I as an Agent feel, and seems that the insurance infrastructure has broken down. No immediate hope for the consumer.

    This is nothing short of culminating in a catastrophe. Clients are being forced to go without coverage for prices or even to acquire insurance that is out of reach. Prices are outrageous. Standards that it takes 20 days to either get approved for insurance without coverage.

    So we will have a new standard no one will have the safety feature of being insured. Is that the NEW STANDARD ?

  6. Patricia Delgadillo

    Gracias por representar la actual realidad en estos momentos tan inciertos en la industria, se tenia que decir y SE DIJO.

  7. Fernando Fernandez

    Yes, we have been losing costumer left and right for not being able to offer any product, all of our companies are staying away from new businesses, if it doesn’t get better soon we are going to be forced to layoff our agents.

  8. Sal Ayala Jr.

    This a good start, but we need to organize and do more. This commissioner is just ignoring the damage that he has caused our insurance community.

  9. Jose Mendez

    Im not too concerned with the CDI, i’m more concerned about the Insurance Companies being greedy. Look at the end of the day, we live in a capitalist society, always yelling about a “free market” and less regulations. The fact that Statefarm very quickly decided that they are pulling out of california is a clear sign that they don’t care about the consumers. These are coporations that make Billions , from different markets not just auto and home. This is industry problem rooted in greed, one starts and the others follow, Im sure if we wrote letters to Statefarms CEO and other insurers asking them to wait it out, that would probably be more effective, but as long as you guys keep pointing the finger at the CDI and not the greedy corporations, we are going to continue in this crisis.

  10. David Ornelas

    This has been the worst times, in the business of Insurance, Insurance companies going out of business. Can’t quote any more, customers are desperate finding an Insurance. We are losing costumer. This are hard times for everybody. We need help!!!!!!!

  11. Tamari Keith

    Thank you for your letter, this situation has got to turn around. It is true that 2 weeks is too long to have to wait for quotes and many carriers no longer accepting new business is reducing the number of carriers we can write people with. I am getting many people calling me saying that they can’t get a policy after making several phone calls, or they need it right away and have to wait 2 weeks. It is time for the commissioner to open his eyes and do what is right for the good of ALL concerned, I don’t know WHAT he could possibly be waiting for.

  12. Aggie De La Torre

    So glad to see someone take lead… These are incredible times.

  13. RuwanKotuwelle

    It is unfortunate that elected officials play dumb like aliens from another planet. This is a dire situation. More and more clients decide to drive without insurance. Homeowners are yet to find out what is waiting on them. Time bomb is yet to explode. Hope the officials too face consequences.

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