Allstate drops below third place in the auto insurance market

Auto Insurance Market - Allstate Drops in the auto insurance market - graph down trend

The car policy provider recently lost significant ground according to recent NAIC data. Allstate has lost its previous coveted spot in the auto insurance market. The insurance company had previously been in third place in the country. That said, the National Association of Insurance Commissioners (NAIC) released data showing the provider’s downward slide. Allstate was the third auto insurance company in the United States but fell to fourth place. The reduction of Allstate’s position in the auto insurance market occurred when its share dropped 0.43 points to control 9.29 percent…

Read More

Evolution of transportation may change the auto insurance industry

auto insurance woman female

Auto insurers will be impacted by self-driving cars Safer roads could have a major impact on the auto insurance industry, and self-driving cars may be the cause, according to a new report from KPMG. The report predicts that the rise of driverless vehicles will have a significant impact on the auto insurance market, causing a shift in liability that some insurers may find it difficult to cope with. These vehicles have yet to see a widespread commercial release, but that may change in the coming decades. 60% decline in vehicle…

Read More

Auto insurance industry may be 40 percent of its current size in 25 years

auto insurance refund Senior Man Driving A Toy Racing Car

In a quarter of a century, the car policy market could shrink by as much as 60 percent, says KPMG. A recent report issued by the KPMG consulting firm has suggested that by the time the millennials who are only just entering into the auto insurance industry as professionals now become top execs in 25 years, the market will be 60 percent smaller than its current size. The private passenger automobile industry is expected to experience a massive decrease in size. While that doesn’t sound like good news for the…

Read More

Auto insurance competition helps U.S. drivers

Auto Insurance rates and prices

It is believed that this heavily regulated industry keeps its prices down because of the need to compete. The Insurance Information Institute (I.I.I.) has released a report that has stated that even though the auto insurance industry is extremely regulated in the U.S., the high level of competition within the marketplace is making sure that coverage is broadly available to motorists and stays affordable. The cost of this coverage has been increasing at a slower rate than gasoline and healthcare, said the I.I.I. In response to a Consumer Federation of…

Read More

American car insurance risk starts to rise following record breaking low

The proprietary Auto Insurance Risk Index from TransUnion has reported a tiny rise by 0.03 percent at the end of 2011’s third quarter, following four consecutive declines in the previous quarters. The score at the end of the third quarter was 98.85, which, when compared to the second quarter, is three basis points higher. Equally, though, it remains 31 basis points below what it was at the same time in 2010. The peak of the recession in the second quarter of 2009 was 73 basis points higher than it is…

Read More

China is likely to allow foreign companies into its mandatory auto insurance marketplace

The Insurance Association of China’s chairman has announced that the country will likely be opening its doors to the largest auto market in the world to make it possible for foreign companies to enter into the mandatory auto insurance marketplace in 2012. Currently, this auto insurance market of $31.5 billion is entirely led by insurance companies from China, for example, Ping An Insurance and PICC Property and Casualty Co., but regulators are working to bring in a greater amount of competition. Jin Jianqiang, in Taipei, explained that insurers from other…

Read More

Allstate net income tumbles for third quarter after payouts for natural disasters

Following the $1.08 billion payout by Allstate Corp. for natural disaster claims, the net income for the company’s third quarter fell by 55 percent. Equally, the insurer also said that its investment results were better, and that its auto insurance segment profits assisted in offsetting some of the losses resulting from this year’s storms. Overall, it saw a $165 million net income, which translates to 32 cents per share, when compared with the figures in 2010 which were 68 cents per share and a net income of $367 million. Allstate…

Read More

Mercury Insurance shows their approval for newly proposed auto discount in California

Mercury General Corp. has just announced its support of an auto insurance initiative comparable to last year’s Proposition 17, which was turned down by voters in June 2010. Supporters of this initiative are thrilled with Mercury’s backing, and are hoping that this second effort will make the difference. Insurance trade group, American Agents Alliance’s executive director, Mike D’Arelli, submitted the proposed initiative’s summary to the California attorney general’s office; taking the first step toward a vote on the initiative. Mercury had previously been a supporter of Proposition 17, having spent…

Read More