According to the latest research from J.D. Power, the decline in satisfaction is due to price perception. After improving in each of the past two years, a decline in satisfaction among the nation’s largest auto insurers is driving overall industry satisfaction downward as customers react negatively to the perception of price increases, according to the […]
GEICO Tops 14 million Policies in Force
GEICO announced that Christopher Stevens’s auto insurance purchase on his smartphone propelled the company to the 14 million policies-in-force milestone. The Hixson, Tenn., native purchased the record-breaking policy after buying a new car the day before Valentine’s Day. GEICO is the second largest private passenger auto insurer in the U.S. according to 2015 market share […]
Moody’s Sees Short Term Gain, Long Term Challenge for Auto Insurers from Self-Driving Cars
A new report from Moody’s Investors Service says that accident avoidance features in vehicles, such as automatic braking, adaptive cruise control, and lane departure prevention will lead to lower accident frequency in the next five-to-ten years, a benefit for auto insurers. Longer term, however, self-driving cars could translate into significantly lower premiums and profits for […]
Largest Auto Insurers Added Market Share in 2015
The largest private passenger auto insurers in the U.S. gained market share in 2015. Growth continues long term trend. Since 2000, the largest private passenger automobile insurers have been growing their combined market share and more than half of all private passenger auto insurance in the United States is handled by just five companies. The […]
AASP/MA Reports Standardized Auto Policy Withdrawn
The Alliance of Automotive Service Providers of Massachusetts (AASP/MA) and the Statewide Towing Association of Massachusetts (STA), announced that due to o pressure from the two industry associations, the Automobile Insurance Bureau (AIB), the association of insurers, has withdrawn their recently filed standard auto policy for Massachusetts. A new policy has been filed by AIB […]
Ratings Agency Reports U.S. Property/Casualty Insurers’ Operating Profitability Declined in 2015
U.S. Property/casualty insurers’ operating earnings decreased in 2015, highlighting the competitive operating environment and low investment yields that challenge insurers’ earnings growth potential, according to a new report by Fitch Ratings. Favorable reserve development and limited catastrophic loss activity helped to offset sluggish investment income. Fitch’s universe of 45 (re)insurance organization reported an aggregate a […]
Allstate Creating Innovation Hub in Chicago
New space will help attract data and innovation specialists to drive advancements in research, analytics and telematics. Allstate announced plans to establish an innovation hub at the Merchandise Mart in downtown Chicago. The 45,000-square-foot office will bring nearly four hundred jobs to Chicago, primarily in the company’s Quantitative Research & Analytics (QR&A) and Connected Car […]
State Farm Reports $6.2B Net Income in 2015, Up 47.6% from 2014
Realized capital gains drive net income growth. Auto insurance earned premiums up $1 billion in 2015 versus 2014. Auto underwriting loss widens. The State Farm property-casualty (P-C) companies reported total revenue, which includes premium revenue, earned investment income, and realized capital gains (losses), was $75.7 billion for 2015 compared with $71.2 billion for 2014. State […]
Google to Shut Down Auto Insurance Comparison Website
Less than a year after announcing its launch in the U.S., Google will be shutting down its Compare product that allowed consumer to get quotes on a variety of financial services including auto insurance. In an email to Compare partners, Google explained that it plans to terminate its price comparison service in the U.S. and […]
Auto Physical Damage Insurance Underwriting Profit Declining Over Past Decade
Latest statistics from the National Association of Insurance Commissioners indicates that the percentage of premiums going to pay losses increasing. Data contained in the National Association of Insurance Commissioners (NAIC) report on profitability by insurance line in 2014, released on December 31, 2015, illustrates the increasing percentage of underwriting dollars going to pay claims on […]