Personal auto

Allstate warns of further CA, NY and NJ auto cuts if no action on rate filings in Q4

Allstate will have no choice but to continue reducing the amount of business it writes in California, New York and New Jersey in the new year unless there is “action” on rate filings it has made within the three states during Q4.

With a little help from our (government) friends…

Undoubtedly the biggest story in the US insurance industry this year has been the widespread retrenchment of carriers from cat-prone states, with headlines spreading beyond the trade press and into mainstream news as availability and affordability issues in property and auto have escalated.

Kemper CEO Lacher expects “at least a year or two” more of auto volatility

The CEO of auto-focused insurer Kemper has commented that the “dynamic and volatile” personal auto environment will likely persist for another two years but highlighted the positive impact of rate improvements and the strategic initiatives his company has taken.

Kemper Q3 CR up 2.3 points to 109.9% as operating loss deepens to $27.9mn

Kemper Corporation ended Q3 2023 with its combined ratio increasing 2.3 points to 109.9 percent as the carrier posted an operating loss that deepened to $27.9mn and which was towards the lower end of the $25mn to $35mn deficit the carrier had pre-announced earlier this month.

EY: UK personal lines insurers to post +100 combined ratio on FY23 & 24

Surging inflation, rising costs and larger-than-expected natural catastrophe claims will keep UK personal lines insurers trading in the red for the next two years, according to EY, which predicted the sector will post a net combined ratio of 114 percent in 2023 and 104 percent in 2024.

Kemper in another profits warning as it preannounces operating loss of $25mn-$35mn

Kemper Corporation is set to fall to another loss in Q3 as it preannounced an estimated net loss range of $140mn-$150mn and operating losses of between $25mn and $35mn including a $78mn reserve charge in its auto book driven by personal injury protection (PIP) in Florida.

Secura to exit personal lines following losses in past two years

Neenah, Wisconsin-based Secura Insurance has announced that it will exit the personal lines insurance market over a 26-month process, a move that follows its home and auto businesses suffering losses resulting from catastrophes and inflation.

Geico cutting 2,000 jobs to “adapt swiftly” to challenging environment

Geico CEO Todd Combs announced on Thursday that the personal auto insurance giant is laying off 2,000 staff – amounting to about 6 percent of its workforce – a move the executive said is required to allow the company to “adapt swiftly” to tough conditions.

Sabre reports GWP growth and improved margins in positive sign for wider market

London-listed motor insurer Sabre Insurance reported strong overall premium growth of 20 percent and improved margins for the first nine months of the year, in a trading update analysts said is was positive read-across for the wider market.

Car insurance premiums reach highest on record with 58% annual increase: WTW

ABI: Too early to estimate insured cost of Luton Airport fire

While it is too early to estimate the insured cost of the fire that erupted at Luton Airport earlier this week, the Association of British Insurers has clarified that fire and motor insurance policies should provide cover.

Triple-I: Inflationary trends drove 2013-2022 auto liability payouts up by $96bn-$105bn

US personal and commercial auto insurer liability claim payouts combined were $96bn to $105bn higher between 2013 and 2022 because of social and economic inflation, a new Insurance Information Institute (Triple-I) study has found.

CDI fines Go Maps and Topa for insurance claim violations

The California Department of Insurance has reached settlements with Go Maps Inc and its underwriting arm Topa Insurance Company after the regulator completed its investigation into complaints that claims were mishandled for over two dozen drivers.

Kemper trims preferred home/auto agency commissions to 1% from 1 October

Kemper Corporation has told agencies it is cutting commissions on new and renewal preferred home and auto business to 1 percent in most states beginning 1 October, the latest action by a personal lines carrier to reshape portfolios amid a tough environment, The Insurer can reveal.

Progressive CR up 3.6 pts to 97.2% in August on cats and unfavourable development

Progressive’s combined ratio increased 3.6 percentage points year on year to 97.2 percent in August, as the US auto specialist absorbed the impact of elevated catastrophe losses and continued to battle unfavourable development on business written in prior accident years.

Farmers to cut agents’ base commission rates “for most products” in December

Farmers Insurance near the end of this year will reduce its base commission rates for agents on both new and renewal business “for most products in our most challenging markets”, The Insurer can reveal.

S&P: US private auto insurers impose 11% average premium rate rises through Aug

US private auto insurers have pushed through premium rate increases in 2023 averaging 11.0 percent up to 18 August, according to S&P Global Market Intelligence.

California hit with further insurance exits as AmGUARD and Falls Lake plan departure

California’s beleaguered property insurance market has seen another two carriers exit the state with Berkshire Hathaway’s AmGUARD Insurance Company and James River’s Falls Lake Insurance both deciding to pull back.

Farmers cutting 2,400 jobs in drive to create “more efficient” organisation

Farmers Insurance is cutting around 11 percent of its workforce - approximately 2,400 jobs - in what forms part of a series of “strategic actions” to “better position itself for a future of long-term profitability and growth”.

CSAA CEO Troy resigns with Zukerman stepping up on an interim basis

CSAA Insurance Group president and CEO Tom Troy has resigned from the US personal lines specialist “to pursue other opportunities”, with executive vice president and chief legal officer Mike Zukerman stepping up to fill the vacant positions on an interim basis.

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