Insurance industry folks individual, does your company clear money stale auto insurance, or is it a loss modernizer?
Answers:
We net money bad of it, but conceivably not how you ruminate.
We do "front queue underwriting" at our department - we enjoy multiple companies. The "appropriate accounts" tend to get hold of placed beside companies where on earth we hold contingency overrides - what that way, is at the close of the year, if our loss ratio are low satisfactory, we carry "bonus" money. Not a ton, but still.
Then the "risky" stuff go to Progressive, Windsor, Leader Infinity, the glorious risk companies. Well, sometimes Progressive get "suitable stuff" when their rates are most competitive.
But if you hike within the door, beside hints of dignified risk behaviors (driving collection, if you're a kid, if you don't own prior coverage, if you're cancelled for nonpay, or if you ask me if I'll lend you the down salary, LOL), next you're going to go RIGHT to one of the soaring risk companies.
For a $100,000 book of business, next to a 30% loss ratio or smaller amount, I don`t know the contingency will be $15,000. So it's not a TON or anything.
And on homeowners, it IS a loss troublemaker.
Once you factor contained by the "service issue", how much it costs to service the accounts, the actual profit on personal lines is pretty slim.
I used to work for one, and they sold it stale to another company because it wasn't drastically profitable.
We spawn money rotten auto and ANY company that follows underwrite guidelines should over the long pull. The majority of multi-line companies I've worked for hold be profitable on auto, at tiniest over a five year time.