麻豆原创

Progressive said it will stop offering dwelling fire insurance, with nonrenewal notices going out as early as Nov. 19.

The Mayfield, Ohio-based insurer said the decision to discontinue writing the coverage, often dubbed “landlord insurance,” for non-primary residences and rental properties was done to focus on owner-occupied homes, and bundling home and auto insurance.

Stopping the line of business will create more capacity for these initiatives, Progressive said, adding that it “remains committed to the homeowners insurance market and will continue to offer homeowners, renters, condo, flood and umbrella policies.”

Progressive said dwelling fire represented 3.6% of the insurer’s property policies as of Sept. 30. During the insurer’s latest earnings call before the announcement to exit DP-3 was made, CEO Tricia Griffith said Progressive had been leaving the dwelling fire marketplace in many states, with regulatory approval in 22 states.

Progressive said other recent initiatives to increase property insurance profitability have included increasing the minimum required wind/hail deductibles, mandating a roofing materials payment schedule endorsement in policies, and aligning agents with the insurer’s underwriting quality expectations.

For some time, calling it the insurer’s “special sauce,” CEO Tricia Griffith has spoken at length of the insurer’s segmentation product models to match rate to risk. Griffith told analysts on the earnings call that the company continues to “make headway in our property business with improved segmentation in our 5.0 product model and adjustments to our underwriting appetite.”

She added that the company continues “to have a really robust derisking program,” highlighting Progressive’s move last year to stop renewing more than 110,000 homeowners policies in Florida.

Topics Homeowners