by Anonymous
The three tiers of insurance are, generally, directs (Geico, Progressive), mutuals (allstate, american family etc) and the Nationals (Nationwide Chubb etc)
1) You don’t hear much about group 1 anymore because their business is tanking…going away. It worked for awhile but now they are about the same cost structure as group 2 but without any service (unless you count indian call centers as customer service)
2) The last 10 years have been the most severe weatherwise since weather records began. Most people think of forest fires, earthquakes, tornadoes and all the things that get major headlines. Actually, the number one expense is hail/wind and the last decade was a disaster. The mutuals havent made a profit during that time and cant raise rates fast enough to cover the losses. reserves are gone. Another few years and they, as a group will be gone.
3) The nationals are the best funded and most profitable. They have also had massive losses, but they are also major recipients of indirect funding subsidies from the USG. They will be last man standing.
Of the nationals, two are slated to emerge after “consolidation of the majors to protect the consumer” or some other narrative. Although not heard from industry sources, I surmise that consolidation down to two and heavily subsidized by the man, obtaining insurance will be available to those who meet a minimum social credit score. Too low, no insurance. Actually underwriters already consider credit scores in the process.
Its too late and nothing can be done. It’s baked. The change is coming and all you can do is adjust to the new reality.
I will be around for a few if anyone has any questions