In an effort to restore profitability to its collision and comprehensive rates, OrionAuto announced that it would remove its full coverage rates from the FSC comparative rater for high performance and high value automobiles.
The change, which will be effective Sept. 15, is the latest in a series of efforts to improve profitability. OrionAuto implemented a rate increase June 1, as well as a down payment restriction on full coverage new business policies, both of which have contributed to over a five-point loss ratio improvement in its physical damage lines.
A pending rate increase, scheduled to go into effect at the beginning of 2001, should help matters further, at which point the company expects to restore broker ability to write full coverage applications on these risks.
Meanwhile, OrionAuto will still permit the endorsing of these vehicles on existing policies, and will continue to write all liability coverages on them for new business.
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