Do you know that State Farm recently, withdrew it\’s auto business operations in N.J.? However, the insurance department \”negotiated\” with State Farm, State Farm re-entered the market…BUT, State Farm WILL WITHDRAW from the N.J. marketplace, under an orderly withdrawal plan authorized by the N.J. department of insurance, thus cancelling or non-renewing about 96,000 auto policies between now and 2007.
NJ auto is a very good example of a dysfunctional marketplace. It\’s little wonder that State Farm would pull out. A more logical question would be why would anyone invest their scarce resources to this state when they can go elsewhere and have much better profit opportunities?
State Farm WILL withdrawl from the NJ auto market. You can count on it, especially with this ruling. The auto market in NJ looks on the surface that it is in great shape, but it is not. The grim reaper is just around the corner. Rumor has it that GEICO is running at over 100% PURE loss ratio in its first year back in NJ. Does anyone remember that GEICO went bankrupt back in the last 1970\’s? Hummm, here we go again!
State Farm did plan on leaving the state about two and a half years ago. Since changing their minds, they have posted profits in the state and have reduced their premiums. Somehow I don\’t see them leaving anytime soon.
Do you know that State Farm recently, withdrew it\’s auto business operations in N.J.? However, the insurance department \”negotiated\” with State Farm, State Farm re-entered the market…BUT, State Farm WILL WITHDRAW from the N.J. marketplace, under an orderly withdrawal plan authorized by the N.J. department of insurance, thus cancelling or non-renewing about 96,000 auto policies between now and 2007.
NJ auto is a very good example of a dysfunctional marketplace. It\’s little wonder that State Farm would pull out. A more logical question would be why would anyone invest their scarce resources to this state when they can go elsewhere and have much better profit opportunities?
State Farm WILL withdrawl from the NJ auto market. You can count on it, especially with this ruling. The auto market in NJ looks on the surface that it is in great shape, but it is not. The grim reaper is just around the corner. Rumor has it that GEICO is running at over 100% PURE loss ratio in its first year back in NJ. Does anyone remember that GEICO went bankrupt back in the last 1970\’s? Hummm, here we go again!
State Farm did plan on leaving the state about two and a half years ago. Since changing their minds, they have posted profits in the state and have reduced their premiums. Somehow I don\’t see them leaving anytime soon.
NJPAIP Certified Producers will still be here assisting those with 7+ points with getting coverage.
http://www.njpaip.org