These voluntarily granted credits ‘look better’ than credits imposed by State Insurance Depts (SIDs), even if their sizes are equal.
The named insurers know very well this is an opportunity to add accounts through ‘comp(etitive/limentary) credits’ that may be lower than those that are actuarially justified.
That said, anyone with an understanding of risk levels must ask “what is the projected exposure decrease, and when did the insurers know/ determine it?”.
These initiatives appear to be altruistic in nature and I hope they help keep the insurance markets stable and our insureds covered. If you’ve been around before when a major employer closes in an area, you may have noticed insurance payments often take a backseat to other more pressing expenses.
If the industry can keep these policies in force while many of their customers can’t cover their premiums, it will save a tremendous amount of rewriting/underwriting work down the road.
Hopefully, this situation improves with social distancing and the sun’s heat of the new season.
With the stay home orders and less driving why is Farmers only discounting there business insurance customers. What about the car insurance customers? Again we see another example of corporate greed!
I just got GEICO renewal wef May 11, 2020. But no reductions in premiums at all. It is a pure scam, they put April 1 as renewal notice date instead of usual April 11 so they don’t have to pay the discount.
These voluntarily granted credits ‘look better’ than credits imposed by State Insurance Depts (SIDs), even if their sizes are equal.
The named insurers know very well this is an opportunity to add accounts through ‘comp(etitive/limentary) credits’ that may be lower than those that are actuarially justified.
That said, anyone with an understanding of risk levels must ask “what is the projected exposure decrease, and when did the insurers know/ determine it?”.
To stay competitive, you’ve got to do it. Maybe there will be a bidding war on rebates. Competition is good for the buyer.
Are GEICO and Farmers only giving current customers a discount IF they renew? That is, does the discount only apply to the new policy?
No, it is for current clients and we just announced 25% savings on personal lines auto.
Their lawyers should review the ‘discounts’ to see that they are legal. Rebating isn’t.
These initiatives appear to be altruistic in nature and I hope they help keep the insurance markets stable and our insureds covered. If you’ve been around before when a major employer closes in an area, you may have noticed insurance payments often take a backseat to other more pressing expenses.
If the industry can keep these policies in force while many of their customers can’t cover their premiums, it will save a tremendous amount of rewriting/underwriting work down the road.
Hopefully, this situation improves with social distancing and the sun’s heat of the new season.
With the stay home orders and less driving why is Farmers only discounting there business insurance customers. What about the car insurance customers? Again we see another example of corporate greed!
Geico have jacked up my insurance 37 a month this month without any justification….instead discounting how is this going to work?
Geico has increased my monthly premium from 303 to 344 a month without any reason..what will be the justification? What can be done
Auto frequency drops by around 40%, so insurers discount premiums by 15%-20%. Carriers are still doing just fine…
Farmers its time for us to change they don’t offer reviews. just keep paying. time to look for new company.
Why isn’t Farmers Insurance only giving 20% credit to their business insurance customers? What about the regular customer?
I just got GEICO renewal wef May 11, 2020. But no reductions in premiums at all. It is a pure scam, they put April 1 as renewal notice date instead of usual April 11 so they don’t have to pay the discount.