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Wowza. A 2 or 3 level AM Best downgrade. [EXTERNAL LINK] - A.M. Best downgrades State Farm General - Business Insurance
State Farm and their "Difficult Decision" in California [non-renewals]
- Thread starter marindependent
- Start date
- 790
Not good. Expect big time changes from State Farm. Maybe they will begin to underwrite for profit.
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Keep in mind, this isnt State Farm Mutual, it is State Farm General. Likely very minimal premium in SF general in most states. However, it likely gives an idea of what is ahead for most all carriers as AM best issues FSRs this spring & summer
Bad news for State Farm is likely the confusion of consumers seeing the posting & not realizing a difference between State Farm General & State Farm Mutual.
May also impact clients of SF General that have umbrella with other carriers as most wont accept underlying coverage from B rated carriers
- Thread starter
- #14
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Absolutely true. It should be one of the funnest ratings seasons ever. Pull up a chair, get your brackets ready, and enjoy some real March Madness.
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NY independent
Super Genius
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Will California lenders be asleep on this? Last I checked, most lenders here (NY) require A- V or better paper when we write HO where the customer has a mortgage.
- 5,503
Oh yeah, fun. Not fun like going to a comedy show or playing with your dog. More like being run over by a truck, or rolling around in broken glass then taking a bath in Tabasco sauce. Yeah, that kind of "fun".
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That's better than a comedy show or playing with your dog if you're a masochist like me.
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Yeah, come to California and see how much you like it.
To be honest, though, it has been extremely profitable for a select few of us. Disastrous for pretty much everyone else.
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I just had an insured non-renewed by a company I won't name, but they're "On your side". He was paying 30K AP, best replacement coverage was $200K, and it was worse coverage. Pretty property heavy account though.. older buildings, manufacturing, no sprinkers, not many updates. Fun stuff.
It might be profitable until the insurance market runs everyone out of business
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