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Consumer Watchdog Saves Policyholders More Than $53 million with 21st Century, USAA, and Liberty Insurance Rate Hike Challenges

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LOS ANGELES, Nov. 5, 2024 /PRNewswire/ — Consumer Watchdog recently reached settlement in three challenges to double-digit rate hikes requested by 21st Century Insurance Company for its auto policies, United Services Automobile Association (“USAA”) for its homeowners, renters and condo policies, and Liberty Insurance Corporation for its homeowners policies. Consumer Watchdog’s advocacy resulted in a total savings of more than $53 million for California policyholders. The three companies’ newly-approved rates will take effect for all new and renewal policies between November 18, 2024 and February 12, 2025, and will impact over 671,000 policyholders combined. 

According to Consumer Watchdog’s analysis of the rate filings, the companies were overstating projected losses, causing their proposed rates to be excessive by millions of dollars. “Given the current state of the California insurance market, with insurer-created shortages and massive rate increases, it’s important that applications are closely scrutinized,” said Consumer Watchdog Staff Attorney Benjamin Powell. “Consumers’ seat at the table to challenge excessive rates is critical, especially when insurance companies are requesting multiple major rate hikes in the same year.”

In each case, Consumer Watchdog successfully advocated for lower overall rate increases under Prop 103 and prior approval rate regulations, which require insurers to justify all rate changes prior to implementation. 

Company/Line of Insurance

% Overall Rate Increase Requested

% Overall Rate Increase Approved

$ Savings 

Date Approved

Effective Date

21st Century/Auto

18.4 %

15.9 %

11.56 mill

10/2/24

11/18/24

USAA/Homeowners, Renters, Condo Owners

20.2 %

16.8 %

10.37 mill

10/4/24

2/12/25

Liberty Insurance Corp. /Homeowners

29.1 %

16.5 %

31.08 mill

10/2/24

12/10/24

 

In the 21st Century proceeding, the company initially sought a rate increase of 18.4% to its automobile insurance policies. This request followed a prior $29 million dollar rate increase effective January 2024. Consumer Watchdog challenged the rate hike as excessive under Prop 103 and the Department’s ratemaking regulations, specifically challenging 21st Century’s projected losses as being inflated for giving too much weight to recent losses. Additionally, Consumer Watchdog alleged that 21st Century’s method for projecting Bodily Injury and Uninsured Motorist claims would have resulted in excessive rates. Finally, Consumer Watchdog argued that 21st Century was trying to charge consumers for institutional advertising (ads designed to improve the company’s image rather than aimed at selling specific insurance products), in violation of state rules. (Read Petition)  

Consumer Watchdog requested that 21st Century provide further information to substantiate its application, and successfully advocated for a lower rate increase of 15.9%, representing a savings to California policyholders of more than $11.5 million. (Read Stipulation

In the USAA proceeding, the company sought an overall rate increase of 20.2% for its homeowners, condo and renters policies combined, which would have cost California policyholders an overall $53 million. Consumer Watchdog challenged the rate hike as excessive, calling out United Services’ projected losses as being overinflated. Consumer Watchdog also alleged that USAA was in violation of the rules by failing to provide required information to the Department to substantiate its loss projections. Finally, Consumer Watchdog argued that USAA, like 21st Century, had failed to properly exclude expenses for institutional advertising. (Read Petition)  

Consumer Watchdog requested that USAA provide further information in order to substantiate its claims about losses and other information in its application. Consumer Watchdog ultimately achieved a lower rate increase of 16.8%, saving California policyholders a total of more than $10 million. (Read Stipulation)

In the Liberty proceeding, the company sought an overall rate increase of 29.1% for its homeowners insurance policies, at a total cost to California policyholders of over $67 million. Consumer Watchdog argued that the requested rate increase was excessive. As with the 21st Century and USAA filings, Consumer Watchdog argued that Liberty’s trend selections overstated the projected losses, leading to an inflated rate indication. Additionally, Consumer Watchdog challenged Liberty’s claim that only 1% of its advertising expenses were “institutional” in nature. (Read Petition)

Consumer Watchdog sought additional information from Liberty that would support its trend selections and institutional advertising percentage. Through this information exchange Consumer Watchdog convinced the Department that Liberty’s institutional advertising percentage should be 100%, not 1%. 

“Consumers are inundated with ads from insurance groups, with nearly 10% of all television advertising expenses coming from insurers,”[1] said Consumer Watchdog staff attorney Ryan Mellino. “Prop 103 protects consumers from paying for general advertising. If insurers are going to expend billions of dollars in collected premiums on ads, that expenditure must be properly reflected in their rate filings.” 

Consumer Watchdog ultimately agreed that a 16.5% rate increase, reflecting just over half of the 29.1% increase Liberty initially sought, was reasonable, saving policyholders over $31 million. (Read Stipulation)

California’s voter-approved insurance reform law, Proposition 103, requires that insurers open their books and prove they need to raise rates in a process subject to full transparency, in which consumer representatives have the right to review and challenge improper rates and practices. According to the Consumer Federation of America, Prop 103 has saved California motorists over $154 billion since 1989. Consumer Watchdog has saved California consumers over $6 billion over the last 22 years by challenging excessive and unfair auto, home, business, and medical malpractice rates.

For more information about Proposition 103 visit: https://consumerwatchdog.org/prop-103/

[1] Doug Bailey, Insurance industry ads continue to be among top watched, InsuranceNewsNet, Aug. 22, 2022, https://insurancenewsnet.com/innarticle/insurance-industry-ads-continue-to-be-among-top-watched.

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SOURCE Consumer Watchdog

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Global Gen Z Views on Beijing: A Journey Through the City’s Culture, Innovation, and Ecology

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BEIJING, Nov. 23, 2024 /PRNewswire/ — On November 22, 2024, the “Global Gen Z Views on Beijing” event organized by China Daily New Media Center and 21st Century Media and Education officially launched. The event will spotlight three key themes: Beijing’s cultural legacy, technological innovation, and environmental conservation.

During the event, over 20 international influencers will visit notable sites including the Capital Museum and the Zhoukoudian Site Museum to explore the Beijing’s rich history. They will also visit Beijing’s leading tech enterprises and innovation hubs to experience the city’s technological advancements. Additionally, the influencers will visit iconic locations such as the Yanqing Ecological Civilization Exhibition and the Beijing Wild Duck Lake National Wetland Park, gaining a firsthand perspective on the integration of environmental conservation and industrial development in the city.

Through dynamic and youthful storytelling, the event aims to showcase Beijing’s rich cultural heritage and its achievements in sustainable, high-quality development to audiences worldwide. During the first day of the event, Veronica, an Italian exchange student at Tsinghua University, expressed her excitement, saying, “I am delighted to be part of this event. My deep interest in Chinese culture brought me to China for my studies, and I have gained a lot from this experience.”

This event serves not only as a cultural exploration but also as a key platform for sharing Beijing’s historical and modern development with audiences worldwide. Through the influencers’ firsthand experiences, Beijing’s rich cultural heritage and contemporary achievements will be vividly showcased to worldwide audiences. This event offers an international stage for Beijing to highlight its unique appeal, while promoting cultural exchange and fostering global understanding.

View original content to download multimedia:https://www.prnewswire.com/news-releases/global-gen-z-views-on-beijing-a-journey-through-the-citys-culture-innovation-and-ecology-302314744.html

SOURCE China Daily

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China Telecom Gulf Officially Launches in Saudi Arabia for Business

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HONG KONG, Nov. 23, 2024 /PRNewswire/ — On November 21, China Telecom Gulf was officially launched in Riyadh. This milestone marks a significant step in China Telecom’s efforts to provide deep services under the “Belt and Road Initiative” and to promote the building of a “China-Arab Community with a Shared Future.” It signifies another solid advancement on China Telecom’s path toward internationalization. Mr. Liu Guiqing, Executive Director and EVP of China Telecom Corporation, delivered an opening speech, along with Mr. Fawaz, Representative of Contact Office of Chinese Companies in the KSA, Deputy General Manager of Industrial and Commercial Bank of China Riyadh Branch. Over 100 guests and leaders from the Economic and Commercial Office of Embassy of the PRC of the KSA, Saudi Telecom Company(STC), Bank of China, Huawei, and others attended to witness this momentous occasion.

In his address, Mr. Liu Guiqing emphasized China Telecom’s commitment to openness, cooperation, and mutual benefit. He expressed the company’s willingness to share its experiences in cloud-network integration, cloud transformation, intelligent operations, and technological innovation. China Telecom aims to work closely with various levels of Saudi governments, enterprises, and partners to actively participate in the development of local digital infrastructure, drive the rapid advancement of next-generation information technologies, and establish a robust bridge for cooperation between China and Saudi Arabia in the field of information technology. Leveraging its extensive resources and global operational capabilities, China Telecom plans to bring its strengths in 5G, cloud computing, artificial intelligence, and other fields to provide innovative, high-quality communication products and services to Saudi enterprises, institutions, and consumers.

Mr. Fawaz extended his warm congratulations on the opening of China Telecom Gulf. He highlighted that as a leading global provider of communication services, China Telecom possesses abundant cloud-network resources and mature international service capabilities. The establishment of China Telecom Gulf is a significant step toward supporting the digital transformation of businesses in the region. He expressed confidence that through joint efforts, the company will seize opportunities in the digital era and contribute to Saudi Arabia’s socio-economic development and practical cooperation between China and Saudi Arabia in various fields.

China Telecom showcased its global resources, business capabilities, and its investments and partnerships in the Middle East and Africa. Key services introduced included eSurfing Cloud, computing power solutions, quantum technology, and customized 5G networks. Currently, China Telecom operates branches in 42 countries and regions worldwide, owns 53 international submarine cables, and manages 27 self-operated Internet Data Centers (IDCs). Its cloud-network integrated infrastructure and customer-centric digital service systems provide coverage across the globe.

During the event, China Telecom Gulf signed strategic cooperation agreements with Saudi Telecom Company (STC), Huawei Saudi Arabia, and Baud Telecom Company. The parties committed to deep collaboration, leveraging their respective strengths to provide optimized and convenient digital experiences to Saudi customers.

The establishment of China Telecom’s presence in Saudi Arabia marks a major milestone in the company’s entry into the Middle Eastern communications market, representing a key development in its global strategy. Moving forward, China Telecom Gulf will leverage China Telecom’s robust digital infrastructure and resource integration capabilities. We will collaborate closely with local Saudi enterprises, Chinese businesses expanding internationally, and global companies to strengthen cooperation and enhance exchanges. The company aims to contribute to the growth of Sino-Saudi and Middle Eastern industrial cooperation, continuously offering more smart solutions for the development of the Middle East’s digital economy, while striving to become a world-class provider of digital and intelligent technology services.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/china-telecom-gulf-officially-launches-in-saudi-arabia-for-business-302314739.html

SOURCE China Telecom Global

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China set to narrow digital divide

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BEIJING, Nov. 23, 2024 /PRNewswire/ — A news report from chinadaily.com.cn:

Representatives discuss hot topics faced by countries in digitalization

China’s forward-looking vision on the future development of the internet offers a glimpse into how cooperation can narrow the digital divide across the world, at a time when an economic slowdown and impeded globalization have stunted growth worldwide, said government officials and industry experts on Friday.

They made the remarks at the 2024 World Internet Conference Wuzhen Summit that ended in Wuzhen, Zhejiang province on Friday.

They also sought more global cooperation to advance the development of the internet in less-developed economies and enhance digital competence for all.

Ren Xianliang, secretary-general of the WIC, said at a news conference, “More efforts should be made to help make the internet a new frontier for all parties to cooperate and continue to create more convergence of interests, growth points of cooperation and new highlights of win-win scenarios in cyberspace.”

“All parties around the world are expected to join hands to build a cyber world where human beings coexist, jointly create a digital future of win-win cooperation and make cyberspace better for all peoples of the world,” he said.

More than 1,800 representatives from governments, international organizations, industry associations, internet enterprises, universities and think tanks from over 130 countries and regions attended this year’s summit, addressing some of the hottest topics faced by countries in digitalization.

Teo Nie Ching, deputy minister of communications of Malaysia, said at the conference that digital transformation is not solely about technological advancement, but also a reflection of human values and actions.

“As technology progresses, we must uphold a core principle of people-centered and holistic development to ensure that technological applications truly serve the common good and promote share to the progress,” Teo said.

A United Nations report found that 2.6 billion individuals globally still lack internet access and a sharp digital divide can also be observed among economies, among industries and between urban and rural areas.

Although many less technologically advanced regions, such as Africa, possess a strong willingness to build an inclusive and equitable digital world, the rapid advancement of technologies often poses a huge challenge to developing countries — how to actively participate and keep pace with this growth, said Nii Narku Quaynor, chairman of Ghana Dot Com.

Against this backdrop, reinforcing open access to internet channels, digital content and technologies can greatly benefit emerging economies in the digital world, he said.

Eyeing a higher-level of inclusiveness, connectivity and cooperation in the internet sector, a statement on global digital cooperation was released by a sub-forum of the WIC.

The statement highlighted the importance of advancing international cooperation on data exchange, enhancing cross-border data connectivity, and narrowing gaps in data circulation, as well as more initiatives to build an open and mutually beneficial international framework for data collaboration.

Intensified efforts should also be made to deepen international exchanges on technology standards, ethical guidelines and legal frameworks, advancing a widely accepted global AI governance system, said the statement.

It also called for human-centered and ethically sound approaches to cutting-edge technologies such as AI, encouraging safe, reliable, fair and transparent research and development as well as applications of AI.

At the opening ceremony of WIC, Chinese Vice-Premier Ding Xuexiang also stressed the need for the international community to jointly deal with problems such as the digital divide and a grave cybersecurity situation to build a better digital future.

The digital divide continues to widen, and the situation of cybersecurity has become more severe, Ding said, adding that the international community is in greater need than ever of jointly advancing a community with a shared future in cyberspace.

China has been sharing the opportunities of modernization with countries around the world and injecting strong impetus into global modernization, Ding said.

View original content to download multimedia:https://www.prnewswire.com/news-releases/china-set-to-narrow-digital-divide-302314740.html

SOURCE chinadaily.com.cn

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