So Esurance is not doing well with practically no underwriting from online buyers. Hmm, they just started a Commercial online product for BOP’s. I am sure they will enjoy the same results.
Online customers don’t always answer the questions truthfully either. I have had people tell me they have a clean driving record many times and it turned out they had suspended licenses with numerous violations. Oops, not wise to lie on an application.
My understanding is that the combined ration problem for Esurance is not losses but expenses. Their marketing expenses are high and that drives the poor COR. If someone knows different, please let me know.
Just to provide you with some education, Allstate did not lose money. Per the article, “Meanwhile, Allstate’s property-liability combined ratio came in at 95.5…”. A combined ratio below 100 means the company made a profit.
They just did not make as much this 3rd quarter as they did the last 3rd quarter.
Always breaks my heart to see Allstate lose money. Couldn’t happen to a nicer company.
So Esurance is not doing well with practically no underwriting from online buyers. Hmm, they just started a Commercial online product for BOP’s. I am sure they will enjoy the same results.
Computers don’t make good underwriters.
Online customers don’t always answer the questions truthfully either. I have had people tell me they have a clean driving record many times and it turned out they had suspended licenses with numerous violations. Oops, not wise to lie on an application.
That’s all customers.
My understanding is that the combined ration problem for Esurance is not losses but expenses. Their marketing expenses are high and that drives the poor COR. If someone knows different, please let me know.
Eddie Hall,
Just to provide you with some education, Allstate did not lose money. Per the article, “Meanwhile, Allstate’s property-liability combined ratio came in at 95.5…”. A combined ratio below 100 means the company made a profit.
They just did not make as much this 3rd quarter as they did the last 3rd quarter.
They are practicing a model someone said would work and it hasn’t and they will continue to decline.
Agent,
What???? How is that relevant to what I posted?
Thank you, Ron. Glad someone red the article before commenting.
The whole market was just so soft .. Nationwide is getting their butts kicked on the commercial side also.
mostly property and auto.
hopefully we see some hardening coming.