Commissioner Blasts Nationwide, Investors Love Insurance Stocks and the Auto Insurance Market Share Race
Nationwide has come under heavy criticism from Mississippi’s insurance commissioner, Mike Chaney, canceling 3,000 policies right in the middle of hurricane season. He says the state has gone out of its way to accommodate the carrier, but to no avail. Nationwide is just one of several carriers that have restricted or eliminated coverage in states across the country as underwriting profits sink.
Underwriting losses have apparently not dented investors’ interest in insurance companies. A P&C Specialist review of market cap changes of 27 publicly traded carriers found an average increase of 10.5% in the 12 months through Sept. 22, led by Heritage, Markel and Geico owner Berkshire Hathaway.
Another business measure, market share, shows that over the last 10 years, State Farm has maintained its lead in auto insurance while Geico, Allstate and Progressive have battled for second place. Check out the P&C Specialist data visualization of the race to be the top auto carrier.
Speaking of Geico, a couple of laid off workers have sued the carrier claiming they didn’t receive their full severance on the day they were dismissed.
Chart of the week
Keep reading
Want more news for personal lines professionals?
Sign up?for a free trial to receive full access to P&C Specialist for 30-days