Ratio Reduction

For some insurers, change has been as fundamental as deciding whether to exit homeowners altogether. In the final analysis, however, many stay to meet consumer demand for bundling home and auto coverage. Innovation and the pace of change has been most notable in personal auto -- in terms of the overall market and shifts in consumer behavior -- and these changes foreshadow trends in homeowners insurance. Analysis of the auto insurance market proliferated at the end of 2013, with some declaring direct writer Geico the inevitable winner in the "battle of the titans" against Progressive and other major players because they are unencumbered by an agency force. With the historical volatility and poor performance in homeowners, a number of new underwriting approaches are being leveraged to address profitability. It's common practice for insurers to inspect all homes at the time of new business, but that's just a fraction of their renewal policies.