Allstate- Interesting Read

Nov 16, 2016

  1. shawnmwalker
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    shawnmwalker Guru

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  2. AZDave
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    As for spurred growth leading to higher loss ratio: Allstate was not alone that year. Here's an article looking at 11 carriers that had quite high growth, with higher than normal loss ratios for 2015.

    Auto Insurer 2015 Underwriting Performance Loses Traction


    Average combined ratio's for all carriers increased that year by 1.4 pnts, but for these high growth companies, "Underwriting performance deteriorated despite over 5 percent annual growth in segment written premiums for the group, as well as a modest decline in the expense ratio and reduced natural catastrophe related losses compared with the previous year".

    Then there are the companies that experienced similar or even higher growth and ended with a lower combined. Companies like Acuity and Secura. Another advantage of doing business with smaller regional companies. National carriers face totally different growth dynamics.

    As for the CEO, what convenient timing. He's toast, or should be. That stock price was close to all time high, and with their inside knowledge of the claim indicators. Really?: "It also monitors on a daily or even hourly basis the frequency of auto claims. Never knew that, but why not?

    Dave
     
    Last edited: Nov 16, 2016
    AZDave, Nov 16, 2016
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  3. insurance1822
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    insurance1822 Guru

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    LOCK HIM UP! LOCK HIM UP!!

    I wonder if these are a dime a dozen .... but this looks pretty bad for him .
     
  4. ModernInsurance
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    ModernInsurance Super Genius

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  5. marindependent
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    marindependent Guru

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    Thanks for the news post...
     
  6. Matt37
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    Matt37 Super Genius

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    just looking at the auto and property pricing across the country .. All State is just the first of many I believe.

    I know I have been saying this for 5 years now but the hardening market is coming..
     
    Matt37, Nov 18, 2016
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