Allstate Cuts Agent Payouts, Tracking Policy Counts and the MOVEit Hack Hits
Insurance companies continue to pull rate and non-rate levers to reverse underwriting losses and return their combined ratios to a profitable level. The latest is?Allstate, which told its network of captive agents that it would change the way it calculates their commissions, effectively?lowering their payouts.
Some of carriers’ efforts to turn things around has resulted in a decline in policy counts.?P&C Specialist?reported on policies-in-force?in the first half of the year at home insurers including Allstate and?Progressive.
A lot of ink has been spilled on the rising cost of claims but not so much on non-claims costs such as sales and admin expenses. Among a group of 17 publicly traded insurers that included Progressive,?Liberty Mutual?and?Travelers, the?average increase in non-claims costs?over the first half of the year was 3%. Not huge but not nothing.
The MOVEit hack has reached the P&C industry. A third-party vendor linked to?Geico?was allegedly?hit by a cyberattack?involving the widely used file-sharing software. The company said no data had been compromised but its chief security officer nevertheless sent a memo to employees warning them about it.
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