In this week's news will talk about how Rainbow launches restaurant insurance program in California, Nationwide jumping ship on HNW segment, and much more...
Almost a year on from its decision to withdraw from the California homeowners’ market, State Farm reported severe losses in its financials for 2023.
While the giant insurer’s property and casualty insurance companies saw an increase in policy numbers, State Farm found itself facing with underwriting losses in the segment due to high claims severity and significant catastrophe events affecting both the auto and homeowners’ insurance sectors.
The P-C segment reported an underwriting loss of $14.1 billion on earned premium of $87.6 billion for 2023, compared to a $13.2 billion underwriting loss on $74.3 billion in earned premium for 2022. This change, State Farm explained, reflects an improvement in auto lines underwriting results, counterbalanced by a surge in homeowners’ catastrophe claims.
A new study conducted by Trusted Choice, the consumer brand representing the Independent Insurance Agents & Brokers of America (Big “I”), sheds light on the strategies being employed by independent insurance agents to adapt to the hard market.
The “Navigating the Hard Market: How Independent Agencies Are Reacting” report explores the proactive steps agents are taking to enhance client services, communication, and operational efficiency.
According to the report, a significant 65% of agencies have amplified their communication with policyholders, with nearly 90% increasing email correspondence and 21% boosting their paid advertising efforts. Meanwhile, 32% of small agencies (1-10 staff) and 45% of large agencies (more than 25 staff) have recently incorporated new technologies.
Nationwide Mutual Insurance Co. is moving to exit its high-net-worth personal lines business, a symptom of a perfect storm of factors that have come together to make the personal lines market tough sledding for national and regional carriers.
Over the past couple of years, the personal lines market has been buffeted by the effects of loss-cost inflation, worries about the affordability and availability of reinsurance coverage, limited investor appetite for volatility, and more. Many of those pressures are amplified in the high-net-worth sector, according to a report from S&P Global Market Intelligence.
Nationwide, which recently named a new leader for its personal lines business, first announced its intent to exit its high-net-worth business in an October news release.
Amid the mass carrier pullback in the state, a managing general underwriter (MGU) has unveiled a new program for restaurants in California.
Rainbow has unveiled its admitted restaurant insurance program, positioning the firm in a critical market at a time when several traditional carriers have scaled back or withdrawn their services.
The introduction of Rainbow’s tailored restaurant insurance program aims to support insurance agents facing a scarcity of options in the state’s insurance landscape.
The bankruptcy court in Delaware has approved the liquidation plan for Vesttoo following the insurtech’s collapse due to letters of credit fraud.
“The evidence in support of the plan that was proffered or adduced at the combined hearing, and the facts and circumstances of these Chapter 11 cases, establish that each holder of allowed claims or interests in each class will receive or retain as much or more value under the plan on account of such claim or interest, as of the effective date, than the amount such holder would receive if the debtors were liquidated on the effective date under chapter 7 of the Bankruptcy Code,” reads part of the court document seen by Insurance Business.
“As a result, the plan proponent has demonstrated that the plan is in the best interest of creditors and equity holders and the requirements of section 1129(a)(7) of the Bankruptcy Code are satisfied.”