In this week's news will talk about Allstate announces massive home insurance rate increase, Progressive Insurance unveils new brand purpose, and much more…
Progressive Insurance is deepening its commitment to customers and communities with the introduction of its new purpose statement: “We exist to help people move forward and live fully.”
Since its inception in 1937, Progressive has embraced a philosophy that goes beyond traditional insurance, focusing on enabling progress for its policyholders. Its purpose statement encapsulates the company’s mission to create positive change on the road, in homes, and within businesses – areas where Progressive actively operates.
Tricia Griffith, Progressive’schief executive, stated: “Progress is in our company’s name and is at the core of guiding the actions we’re taking to deliver on our commitment to help people move forward and live fully.
“As a brand that largely leverages humor, we’re excited to share more of the heart behind the Progressive story and commit to brand actions that support meaningful and lasting societal impact for customers, consumers, and communities.”
Come November, Allstate will be raising home insurance premiums for policyholders in California by an average of 34.1%, representing what has been described as the most significant rate increase by a major insurer in the state over the past three years.
The approved prices will affect around 350,000 insureds across California, where a property insurance crisis already exists, Bloomberg reported. Documents filed by Allstate indicate that the premium changes will vary widely, with some seeing hikes as steep as 650%, while others could experience decreases of up to 57%.
In California, major insurers such as State Farm and Farmers Insurance have scaled back their operations, blaming the growing financial pressures from wildfires and longstanding regulatory constraints that have limited their ability to raise rates. Allstate, meanwhile, halted the issuance of new homeowner policies in the state in 2022, attributing its decision to the increasing financial risks in the market.
A recent report from the Florida Auditor General has highlighted the need for improvements in the underwriting and eligibility controls of Citizens Property Insurance Corp.
The report, which reviewed various aspects of the carrier's operations — including customer service, claims handling, internal audits, and information technology — found that Citizens needs to strengthen its processes to ensure policies adhere to statutory coverage limits.
As per a report from AM Best, between January 2021 and August 2023, Citizens issued or renewed 1,820 noncommercial property policies that exceeded state-mandated coverage limits, according to the auditor’s report. During this period, Citizens issued and renewed over 3.33 million noncommercial policies.
In response to the findings, Citizens acknowledged the need for improvement and stated that it is currently assessing its systems to identify areas where enhancements can be made.
Inszone Insurance Services has announced the acquisition of Keith Williams Insurance Agency, Inc, an established agency serving clients throughout Texas.
The brokerage noted that this acquisition aligns with Inszone's strategy to expand its presence in Texas and enhance its service offerings to a broader client base.
Keith Williams Insurance Agency was founded by Keith Williams, inspired by a personal experience that pushed him to help others protect their financial futures through insurance.
Williams said that he built the agency with a focus on integrity, sound advice, and customer service, offering a wide range of insurance products to individuals and businesses across Texas.
The U.S. property/casualty insurance industry recorded a net underwriting gain of $3.7 billion and net income of $94.6 billion for the first-half of 2024, according to a new report.
“After years of consistent losses, premium growth is helping the overall industry move towards stabilization, with positive first-half underwriting gains for the first time since 2021,” said Saurabh Khemka, co-president of underwriting solutions at Verisk, in a media statement announcing the figures released jointly by Verisk and the American Property Casualty Insurance Association (APCIA) yesterday.
Basing their estimates on information from statements submitted to insurance regulators by insurers representing roughly 91% of the private U.S. property/casualty market, insurers, Verisk and APCIA reported that net written premiums grew just over 10% to $462.7 billion.