Geico’s Gains, Allstate’s Agent Squeeze, Auto Loss Leaders & NY Fines
Auto insurers have been the big news makers in the P&C world of late.
To begin with, Warren Buffett praised Geico CEO Todd Combs for the turnaround he engineered at the No 3 personal auto insurer, efforts that resulted in a "spectacular improvement" in 2024. However, Buffett, chairman of Geico parent Berkshire Hathaway, also said the recovery is not yet complete.
One improvement the company is planning for the near future is a move out of its Chevy Chase, Md., headquarters. After 65 years in the location, the carrier is looking to modernize and "right size" its workspace and plans to move a couple miles up the road. No jobs will be lost in the move.
Allstate, the fourth largest auto carrier, is making it tougher for exclusive agents to earn bonuses by raising performance targets and tightening eligibility criteria.
P&C Specialist analyzed auto carriers to find out which ones managed to hold their direct loss ratio below 60% for four straight quarters, through Sept. 30 of last year. Turns out that only five were able to do so, and none of the top 25.
Finally, a multi-year investigation by the New York State Department of Financial Services resulted in $20.4 million in fines on 37 auto insurance companies that apparently failed to submit new policy information to the department within the required timeframe. The carriers weren't named.
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