Allstate’s Encompass Insurance to Exit Massachusetts This Summer

Encompass Insurance, an Allstate Insurance company that sells business through independent agents, outlined in its first quarter 2017 earnings release its intent to withdraw from Massachusetts starting in late June as part of its profit improvement actions.

The company informed the Massachusetts Division of Insurance (DOI) that on July 1, it will not be renewing existing personal auto and homeowners portfolios in the state, Massachusetts DOI spokesperson Chris Goetcheus told Insurance Journal.

This comes after Encompass exited the North Carolina personal lines market last May, as previously reported by Insurance Journal.

Encompass spokesperson April Eaton said in an emailed statement that the company has less than one percent of market share in Massachusetts, and the change will have no impact on Allstate or Esurance.

“It is our understanding that Encompass is not giving up its active license to write here; it is just going to start non-renewing policies after July 1,” Goetcheus said, adding that Massachusetts-based The Hanover Insurance Group will be making offers to affected policyholders to continue insurance through Hanover.

Eaton said Encompass entered into the agreement with The Hanover to issue renewal offers for Encompass policyholders starting with July renewals in an effort to ensure a smooth transition and minimize disruption for customers.

The replacement carrier agreement between The Hanover and Encompass will also serve to further strengthen The Hanover’s competitive position in Massachusetts, said Emily Trevallion, director of media relations at The Hanover.

Encompass’ net written premium declined by 10.3 percent, and policies in force were 14.5 percent lower in the first quarter of 2017 compared to the prior year quarter, according to the company’s earnings release. Profit improvements continue to be implemented in states with inadequate returns, the release said, while the company intends to implement growth plans in states achieving target margins.

Topics Massachusetts