The Temp Is Up & So Are Rates
In this short read:
- Texas Drought
- Rate Changes in Texas
- Miles Driven Data
- Agent Ideas for Third Quarter
- Market Chat 2022
- Alinsco Culture
The 100 degree days are adding up here in North Texas and drought conditions will only grow worse in North and Mid Texas over the next month. As wildfire risk accelerates across the west, Texas homeowners and agriculture insurance carriers are getting nervous as we are early in the summer season and still counting the losses from the Eastland Complex fire.
The auto insurance market is heating up as well as consumers seek alternatives to their rising premiums. Every MGA and carrier in Texas have taken some level of increase and only a few have lowered rates as a rebalance to previous increases. Consumers are seeking change at renewal and in many cases are staying put as the market has moved upward in whole.
Data from ITC shows our recent changes at Alinsco, lowering of down payments and showing our EFT discount which have made Alinsco a healthy choice for agents. There were 50% more quotes through Alinsco in second quarter with the changes and our policies in force are climbing. Thanks for choosing Alinsco.
Here are a list of rate change estimates in June from Filings and ITC data:
· American Access: +17.8%
· Infinity: +19.6%
· Progressive: +6.0%
· Mercury: +9.8%
· The General: +14.6%
· Anchor: +8.5%
· Auto Club/AAA: +9.0%
· Texas Farm Bureau: +9.0%
· Safe Auto: +7.9%
· Germania: +8.8%
· Economy: +28.3%
· Root: +18.5%
· United: +7%
· AmWins: +4%
· Mendota: -7%
· Unknown change amounts from: Acuity, Aspen, Loya, Acacia, Apparent, Southern General, and Quantum
Even with the rising cost of fuel, consumers have continued to drive just as frequently. Below is an update though mid-June of 2022. Insureds are on the road which keeps loss frequency up as carriers continue to take rate related to severity with soaring vehicle values and cost of repair.
We recommend agents concentrate on renewals over the next few months in order to retain clients, explain the current environment and offer alternatives if needed. This puts you ahead of their shopping and solidifies you as their insurance consultant.
Last month we had our first Market Chat in two years. It was wonderful to back face to face with agents and talking through the various changes in our industry since our last Market Chat on March 11, 2022. We'll be traveling the state with Market Chat events and keeping you updated about one near you.
Please find a short video from our in-office material where we talk about measuring performance with our staff. It's a good opportunity for you to get some ideas for your office and see a few folks from our leadership team.
I am available for your questions and comments. Please text me anytime or email me at donaldowens@mac.com
In service,
Don Owens