Major Changes Coming to GMAC's Underwriting Guidelines

[BlockO]

I got an email from GMAC about some major underwriting changes starting Sept. 24 for writing new business in Ohio:

• Policy must be paid in full if named insured is under 21 years of age.
• Policies with no prior insurance are unacceptable risks.
• Policies with low credit scores are unacceptable risks.

Sounds like they're trying to move up the ladder so to speak with the preferred market. I was wondering if this change made only applies in Ohio, or have agents from other states seen this?

 

[Guest]

They have (for the last 2 years) been talking about releasing a Homeowners product, so maybe its getting closer to release, so they are trying to become more of a preferred carrier?

 

[BlockO]

I didn't think about the homeowners angle on it. You might be right.

In Ohio GMAC agents have auto & rv. that's it. They keep saying homeowners, motorcycle and commercial auto are coming any day now. But like you said, they've been saying that for a long time. Maybe the time is finally approaching.

The only issue I see is with online leads. People getting quotes online are much more reluctant to give their social security number out to an unfamiliar website than they are with an agent face to face, or on the phone. I don't think it will be a major problem but it will be an extra hassle.