Consumer Watchdog Saves Stillwater Homeowners' Policyholders $13 Million in Rate Hike Challenge

LOS ANGELES, Sept. 23, 2025 /PRNewswire/ -- Consumer Watchdog executed a settlement this week with Stillwater Insurance Company and the California Department of Insurance, resolving the company's application with the Department for a rate increase of 12.4% to its homeowners lines of insurance, saving over 73,000 policyholders a total of $13 million.

Stillwater originally sought a rate increase of 27.5%. Consumer Watchdog challenged the rate hike as excessive under Proposition 103 and the Department's ratemaking regulations, which require insurers to justify all rate changes prior to implementation. Read Consumer Watchdog's Petition here.

Specifically, Consumer Watchdog challenged Stillwater's trend selections as overstating projected losses, resulting in an inflated rate indication. Thanks to the company's prompt, substantive responses to Consumer Watchdog's requests for information and its willingness to re-evaluate its rate indications in light of discussions between the parties' actuaries, the parties were able to reach initial agreement on Stillwater's final rates within three months of Consumer Watchdog being granted intervention.

"This rate proceeding demonstrates how Proposition 103's consumer intervention provisions work effectively when insurers come to the table in good faith," said Consumer Watchdog staff attorney Ryan Mellino. "We are pleased that the parties were able to amicably and timely resolve their differences and reach a result agreeable to all, one that we believe protects both the company and its policyholders."

Consumer Watchdog requested that Stillwater provide further information in order to substantiate its claims about projected losses and other information in its application. After receiving such information and discussing on several calls, the parties agreed that a rate increase of 12.4% was warranted – less than half the amount originally requested. Stillwater's newly-approved rate will have an effective date of November 27, 2025.

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, Proposition 103 has saved California motorists over $154 billion since 1989. Consumer Watchdog has saved California consumers over $6.5 billion over the last 22 years by challenging excessive and unfair auto, home, business, and medical malpractice rates.

Download the settlement stipulation here.

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

SOURCE Consumer Watchdog