Allstate Eyes Growth in Homeowners Insurance Through All Distribution Channels: Allstate has identified an opportunity in homeowners insurance where others may be retreating. The insurer intends to leverage all three of its distribution channels for this growth.
In the face of rising weather – related losses and inflation, some insurers have withdrawn from certain areas or the homeowners business altogether. But during a recent earnings call, Allstate stated its eagerness to step in where margins are favorable. “We view homeowners as a growth opportunity,” said Mario Rizzo, president of Allstate’s property – liability business. He noted that few competitors are keen on writing new business, and Allstate wants to capitalize on this.
Positive Q3 Results and Business Adjustments: Allstate saw significant growth in the third quarter. Homeowners insurance net written premiums rose nearly 11%, and policies – in – force grew 2.5%. The business achieved a 98.2 combined ratio with $60 million of underwriting income, compared to a loss of $131 million in the third quarter last year.
CEO Tom Wilson said that over the past decade, the company has repositioned every aspect of its homeowners book, including underwriting, policy terms, pricing, and claims management. He added that while Allstate’s agents are good at bundling, there’s still room for expansion. “We do think there is more growth potential there,” Wilson said, highlighting the opportunity as other insurers shy away from homeowners growth.
Distribution Channel Strategies and Market Focus: Allstate has all three distribution channels ready to go. Wilson believes there’s great potential in the direct channel, which no one has truly mastered in homeowners insurance sales. “People buy houses off the web. If you buy a house off the web, you should be able to buy your homeowners insurance off the web,” he said.
Rizzo said Allstate can maintain its combined ratio in homeowners and grow across channels. Independent agents have had success leading with homeowners and bundling auto insurance. However, Allstate won’t seek homeowners market share in Florida and California, focusing instead on the rest of the country, especially the middle part, to manage risks and grow geographically.
Related topics
