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uh...
fake u_n_ good morning my name is dave jones and i had the privilege of serving
as california's insurance commissioner when i think
everyone for joining us this morning for this important announcement an
announcement of an important win
for california homeowners and renters
i'd like to think statefarm senior vice president tom conway for joining us for
this important outspent
but i also want to thank state farm agent
heavenly for hosting us in her beautiful offices here in los angeles
and i'd also like to welcome doug color from consumer watchdog
consumer watchdog was the intervene ur in this rate filings
we're here today to announce eight twelve point six percent statewide
average rate reduction for tens of thousands of homeowners and renters
our policyholders of state farm
this translates to and average savings of one hundred dollars
annually on the premiums they pay
this is welcome news particularly given the tough economic times californians
california families continue to face
i'm very pleased when we are able to deliver good news to help california's
families and californians in these tough economic times
this reduction comes as a result of an agreement
reached between the california department of sharon ps statefarm
and consumers watchdog
statefarm is the largest writer of homeowners insurance in california
with twenty two percent of the overall market
for los angeles area homeowners the average rate reduction associate id
with this rate
is twelve point three percent
this is an extraordinary savings
from those who live in los angeles
other major metropolitan areas will see significant decrease as well
for example
san diego every homeowners will see an average reduction of twelve point four
percent
homeowners in the san francisco bay area will see an average reduction of eight
point five percent
and homeowners in the sacramento area
will enjoy a never dot shinde at twenty one
percent on their homeowner's insurance policies with state farm
given the impact that the titanic on amis have on california's families and
their budgets disregard action
will no doubt be welcome news that helped to alleviate many
tight circumstances that families find themselves in
he savings will go into effect for new and renewed policies with state farm
affective
april fifteenth
since day one of my administration
my top priority has been to make sure that california homeowners and
businesses enjoy the benefits of insurance
priced reasonably and affordably
we have used to full measure of our authority under proposition one oh three
to make sure that rates are fair
and that rates are done inouye
that is affordable for california's has a today
we save california consumers and businesses over one billion dollars in
premiums for insurance products at the otherwise would have had to pay using
our authority under proposition one oh three
we secure succeeded in securing savings for consumers and we're very pleased
to this list
in closing i like to thank unrecognized state farm
for the collaborative way in which they work for the department of insurance
on this rate filing
we wanna ek knowledge and express our appreciation
uh... for the very thoughtful
and dedicated work of state farm professionals
and the way which they collaborated with the department of insurance
with that i'd like to invite tom calmly senior vice president state farm
insurance attitude say a few words as well
well i appreciate uh... statefarm agent only hosting us here at our office
i think it's our propriate the commissioner johnson
thank you for recognizing it but i also would say that uh...
who knows our customers better than a
statefarm agent their state farm agent and so it's totally appropriate that
were here
at our agents office and now same
what is going to benefit
eighty five percent of our customers would be the same rate or a lower rate
and they've had on their home owners and uh... we're excited about that
announcement
so anyway i it is a twelve point six percent
rate decrease will be a hundred and sixty million dollars
that state farm will cut their homeowner's rate
in as i mentioned uh... eighty five percent will see either a lower rate or
the same rate
and uh... it's still good news because state farm really is committed to our
customers and committed to
putting together the best combination price and service with financial
stability
and we appreciate working with the commission earned his staff
and gain this filing approved
so thank you
next is uh... my pleasure to welcome and introduce dot heller from consumer
watchdog but they were the interviewers misread filing
and
thanks commissioners tom and helen as well thank you for having us here
i dot heller with consumer watchdog
the hundred sixty million dollar savings is not just the result of an
announcements today
and it's not just the work
of state farm in the department of consumer watchdog that happened last
year
to result in this announcement
the savings today were set in motion twenty five years ago we california
voters enacted
ballot initiative
created a system that was fair
and created more affordable insurance
for all californians
outlaw notice prop one oh three
requires the insurance commissioner to ensure
that the price we pay for home and auto insurance
is justified
and is reasonable
it makes the insurance companies open up their books for public review
and it gives citizens the power to challenge insurance companies to make
sure they don't over charge us
the results of proposition one oh three thick california has the most effective
insurance regulation system in the nation and has borne out today with with
this hundred sixty million dollar
that would be coming back to californians
it goes to show that when government officials insurance companies and
consumer groups
sit down
and apply the rules
we can get a result of that is fair
now quibble for everybody involved the consumers and the insurance companies
and that creates a better more vibrant marketplace
now it's not to say that this process had all of us agreeing at every step of
the way it doesn't mean that we thought that every interpretation of every piece
of data was the same but one thing that we can agree on
anyday
that you put a hundred sixty million dollars
back into the hands of californians and back into our economy is a good day
this process has worked so well for california homeowners
and people who buy auto insurance unfortunately it's gotta be noted
another bright light of insurance health insurance does not have these fools and
here in california people who buy health insurance face rate hike after rate hike
and they don't have the protections that the department of insurance commissioner
jones can offer us for our home
insurance and auto insurance
fortunately next year on the two thousand fourteen ballot there will be
in initiative that will apply the same rules
that we have a home and auto insurance
to health insurance and hopefully
someday will be able to stand up here and say that the rules that protect us
for home in half auto insurance also applied to health insurance
now one final mota
point that i wanna make it's important to note
as tom mentioned
most state farm customers will be seeing
a decrease as a result of this almost eighty five percent there are some
people because of the way insurance has to work
that will see an increase but because of the work of the department of insurance
and consumer watchdog working with state farm even those that will see
that's the small number that will seen increased
it's a limited one and for that for over a million homeowners
two hundred fifty thousand renters and over a hundred thousand condominium
owners in california
their insurance premiums will be coming down
thank you very much
thank you
i'd like to thank again uh... tom calmly
helen lee
a state farm
uh... consumer watchdog for their participation in today's announcement is
indeed good news
hundred sixty million dollars in savings
eight twelve point six percent havard reduction
uh... that will benefit
literally hunks hundreds of thousands of policyholders of state farm so
pre shaped uh... the collaborative way in which all the parties have uh...
engaged in this matter
uh... at the department sure insular
most please denies the insurance commission most pleased
uh... that we'd
were able to obtain this particular result
regrettably uh... for those that are listening online we don't have the
ability to take
uh... questions
but let me share with you the uh... phone number
uh... for um... are
press office in that phone number
is uh... nine one six four nine two three six one nine if you have
additional questions please afield free to call us
and we again thank everyone for their participation
uh... in this important announcement thanks again
go