Overview of State Farm Downgrade In a move that has caught the attention of policyholders and investors alike, AM Best has downgraded the Financial Strength Rating (FSR) of State Farm General Insurance Company (State Farm General). This marks a significant shift from an ‘A’ (Excellent) rating to a ‘B’ (Fair) classification, while the Long-Term Issuer Credit Rating (Long-Term ICR) dropped from “a” (Excellent) to “bb+” (Fair). Implications of Ratings – Balance Sheet Strength Assessed as Weak The Credit Ratings issued by AM Best take into account a variety of factors…
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Consumers in Gen Y least likely to be loyal to one insurance company for all policies
A recent J.D. Power study showed this generation is most inclined to split their coverage across multiple insurers. Generation Y has now become the largest home buyer consumer segment in the country, and it is also the most likely to unbundle (also known as splitting) their coverage needs instead of choosing only one insurance company for all of their policies. They are splitting their insurance policies at a greater rate than any other generational group. For an insurance company, this actually provides quite the opportunity. The J.D. Power 2015 U.S.…
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