Quote:
Originally Posted by CFrance
We have never once, in 40 years, seen a decrease in home owner's insurance. I'd sure like to know where that is happening at Allstate. Can you be more specific?
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Cfrance, periodically the major insurance companies (Allstate, State Farm, Geico, Progressive, etc.) when they are incurring significant problems or losses in a specific product line, will a open up a new sub-company under the umbrella of the overall company and offer new home owner or auto products with new underwriting guidelines. These new sub-companies are not yet diluted with major claim losses and this allows the prices to again be more affordable. Some Agents have the opportunity to save their customers that have good claim records and long loyalty and move them from their old policies to new ones in the newly opened sub-company. That's one way you can see your prices go down. The trick is trying to maintain low claim ratios in the new company.