Apparently, someone needs to visit the State Farm offices in Bloomington and explain the program to them. They lost $7 billion in Personal Auto in 2016 and their modelers, analysts need to be replaced with someone that has some common sense underwriting.
Agent, I agree State Farm lost ~$7B on their Auto book in 2016, but carriers normally don’t make money that way, it’s usually due to investment income.
We can’t really say if State Farm did well or not solely based off their auto losses unless we compare their loss ratio to the industry.
For example: if the entire auto industry had a loss ratio of 120% and State Farm’s loss ratio was 102%, even though they lost $7B, I would argue they actually did pretty well that year.
And you would be arguing wrong Rosenblatt. Do you really believe State Farm had a better year than the rest of the industry in Personal Auto? If so, why are they closing 11 offices and transferring or laying off 4,500 employees? Sounds to me like they are not doing well at all. Rate increases on the way. Get ready for it.
Apparently, someone needs to visit the State Farm offices in Bloomington and explain the program to them. They lost $7 billion in Personal Auto in 2016 and their modelers, analysts need to be replaced with someone that has some common sense underwriting.
Agent, I agree State Farm lost ~$7B on their Auto book in 2016, but carriers normally don’t make money that way, it’s usually due to investment income.
We can’t really say if State Farm did well or not solely based off their auto losses unless we compare their loss ratio to the industry.
For example: if the entire auto industry had a loss ratio of 120% and State Farm’s loss ratio was 102%, even though they lost $7B, I would argue they actually did pretty well that year.
And you would be arguing wrong Rosenblatt. Do you really believe State Farm had a better year than the rest of the industry in Personal Auto? If so, why are they closing 11 offices and transferring or laying off 4,500 employees? Sounds to me like they are not doing well at all. Rate increases on the way. Get ready for it.