Tag: Market Stability

Liberty Mutual’s Subsidiary Non-Renews 17,000 Fire Policies in California Due to Technology

Ester Adams
17,000 Fire Policies Non Renewed in California Due to Technology

Liberty Mutual to Discontinue Dwelling Fire Policies In an unusual development, Liberty Mutual Fire Insurance Company, a subsidiary of Liberty Mutual, has revealed that it will not renew around 17,000 dwelling fire policies in California, citing technology-related factors rather than the increased fire risks that have been prevalent in the state. The decision, set to unfold from September through November, stems from the company’s intent to retire the “antiquated” technology previously used to manage these policies. According to filings with the California Department of Insurance, Liberty Mutual stated that “it…

Read More

Could Percentage Deductibles Save a Badly Beaten Property Casualty Market?

Loreen
homeowners insurance percentage deductible

This pivotal question probes whether the shift to percentage deductibles could revitalize a property casualty market suffering from severe strain. The answer hinges on multiple facets that influence the stability and attractiveness of the insurance market. Understanding Percentage Deductibles Percentage deductibles are calculated as a percentage of the insured value of the property, rather than a fixed dollar amount. For instance, if your home is insured for $300,000 and you have a 2% deductible, you would be responsible for $6,000 in the event of a claim. This approach is commonly…

Read More

Allstate Reports Losses: What Does This Mean for the Market?

Live Insurance News
Allstate reports losses

In a recent financial disclosure, The Allstate Corporation (NYSE: ALL) has reported significant catastrophe losses for January, posing new questions about the impacts on the broader insurance market. Key Financial Impacts Allstate’s estimated catastrophe losses have tallied up to $276 million pre-tax, or $218 million after-tax, for the month of January alone—a substantial hit to the corporation’s financials. Predominantly, these losses stem from two major events, accounting for the lion’s share—around 80%—of the total figure, although these have been slightly mitigated by favorable re-estimates of prior events’ reserves. Rate Adjustments…

Read More