State Farm Executive Fired Amidst Controversy over Rate Hikes and Remarks
A top executive at State Farm Mutual was fired this week after his controversial statements regarding the company’s California rate hikes and his criticisms of Pacific Palisades homeowners, which were captured on an undercover video.
Haden Kirkpatrick, the former vice president for innovation and venture capital at State Farm, was recorded making disparaging remarks about the rate increase requests and the residents of Pacific Palisades. The video was published by O’Keefe Media Group, a conservative media outlet.
State Farm Insurance headquarters in Bloomington, Ill.
In the video, Kirkpatrick stated that the rate hike requests were “kind of” orchestrated, but not in the way one might think. He described a situation where the company might tell the Department of Insurance that they are underinsured and need to increase rates, hinting that the insurance provider would cancel policies if the department declined.
State Farm General, the company’s California subsidiary and the state’s largest home insurer, has requested an emergency 22% rate increase for its homeowners policies. The company attributed this need to recent fires and a decrease of approximately $5 billion in its surplus account over the past decade. The insurer has reportedly just over $1 billion in surplus to handle another catastrophe.
Subsequently, California Insurance Commissioner Ricardo Lara rejected the request for a 22% emergency rate hike unless the insurer provided more evidence of its need. A recent hearing between the commissioner and State Farm executives involved discussion on the potential consequences of not approving the rate hike.
Kirkpatrick also made critical comments about Pacific Palisades, stating that homes should not have been built there. He also stated that the area was a “f— desert.” He said he tasked the company’s HR team to create a year “2040” workforce that is more “Hispanic and Latino,” which he said was being “biased … away from my own kind.”
In response to the video, Michael Soller, a spokesperson for Lara, said, “We want answers from State Farm. This only raises more questions.”
Ricardo Lara, California Insurance Commission
State Farm released a statement indicating that Kirkpatrick is no longer employed by the company, and his statements “are inaccurate and in no way represent the views of State Farm.” The company stated that the assertions do not reflect their views regarding fire victims, the company’s commitment to Californians, or its hiring practices.
Kirkpatrick reported that he was fired because of the remarks he made. He said the video was recorded during what he now believes was a setup on a Tinder date in late January. He has since declined further comment.
Consumer Watchdog, a Los Angeles advocacy group, has sent a letter to Lara, requesting an investigation into Kirkpatrick’s comments. The group suggested that State Farm may be using cancellations and the threat of future cancellations to pressure the Department of Insurance to approve rate increases. The O’Keefe Media Group, which published the video, is known for publishing undercover videos. O’Keefe has previously faced criticism for deceptive editing.
