It can keep increase for now; agency vows to pursue battle on other fronts.
Now Allstats can increase the rate.
I don't think the department should get involve into the rate. Let business as business.
IMO, if the rate is too high, the homeowner will shop around to find another insurance company. If the margin profit is very high, more investors will join in insurance industry. It will be more competition when more competitors. Then the rate will drop at that time.
The department just need to rule that all major changes of insurance coverage, rates, conditions favored to Insurer should notice to insured and give them enough time to consider and/or find a replacement.