Mutual Auto Insurers’ Ratios Rise; Farmers & Progressive Eye Expansion; Georgia Agent Exodus
Over the last two years, combined ratios at the top mutual auto insurance companies rose by nearly 6%. While that doesn't sound great, the average was a?healthy 94.6%. And of the 30, only four suffered double-digit increases.
At?Farmers?— not a mutual — the combined ratio dropped a full 15 percentage points this year through Sept. 30 to 93.5%, laying the groundwork for the carrier to expand. That said,?trouble appears to be brewing?in Georgia, where the insurance company has lost 70 to 188 agents and more than 100,000 policies this year.
Progressive?also has its eyes on expansion and it's doing it through advertising. The No. 2 auto carrier?spent a staggering?$1.2 billion on advertising in the third quarter, a 394% increase from the same period last year and the most its spent in any quarter of its history.
Part of that advertising spend is to increase the number of people buying its auto policies and the strategy appears to be working. In Q3, the number of Progressive auto policies?rose?by about 17% while policy counts at competitors like?Geico,?State Farm?and?Travelers?declined.
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