Massive restructuring announced by Nationwide yesterday

[NY independent]

All monoline auto policies are being non renewed country wide. They are re underwriting their PL book and
non renewing a ton of small and middle market CL. NW agents have to get approval before they can quote a auto/home etc. (that will be a "no, doesn't match our appetite). We are a pretty large NW agent and this will be a major project for us. Now I hear that Velocity is exiting HO throughout the entire country?????? We have a pretty sizable book with them too. I guess I know what I'll be doing for the rest of year.....I hate rewrites.....Who is next?

 

[Al3x Lee]

All monoline auto policies are being non renewed country wide. They are re underwriting their PL book and
non renewing a ton of small and middle market CL. NW agents have to get approval before they can quote a auto/home etc. (that will be a "no, doesn't match our appetite). We are a pretty large NW agent and this will be a major project for us. Now I hear that Velocity is exiting HO throughout the entire country?????? We have a pretty sizable book with them too. I guess I know what I'll be doing for the rest of year.....I hate rewrites.....Who is next?

We are rewriting a bunch of American Hallmark business right now due to their AMBest downgrade. Luckily a large part of our book isn't with them, but enough to hurt.

 

[tikibarrister]

So you're saying they're no longer on our side?

 

[marindependent]

All monoline auto policies are being non renewed country wide. They are re underwriting their PL book and
non renewing a ton of small and middle market CL.

Thanks for the share.
Lots of change out there for certain.

 

[ehall2]

This is not good news. Where did you get this information.

 

[marindependent]

There now appears to be an update on the Nationwide Portal concerning, at least, some of this. Log in and check it out.

Sounds like big changes in small business and increased requirements in personal lines.

 

[Al3x Lee]

There now appears to be an update on the Nationwide Portal concerning, at least, some of this. Log in and check it out.

Sounds like big changes in small business and increased requirements in personal lines.

Read through it, It's almost like Nationwide is growing tired of all the insurance fraud taking place. I can already see the applicants seething after reading the requirements to insure a car in California lol

 

[ehall2]

This appears to be a surplus problem with NW. I just wish they would be honest and say, "we don't want anymore new business until further notice", instead of making the qualifications for new business impossible to comply with. Also, we had several quotes we were going to issue in the next few days but now NW won't even honor those. I understand why they may be doing what they are doing but just be honest. It's going to get where the only companies that will write new business will be the ones that have enough suplus.

 

[ehall2]

I didn't see anything about farm owner business. NW has been practically giving away this business and the farm owner is a difficulty business to make a profit. Many companies have jumped into the farm market and jumped out in a few years. A friend of mine who was a farmer and became an independent agent was insuring a farm with Grange and the annual premium was $22,000 per year. An agent with NW insured it for $11,000 per year. A company can't do this very long and not run into loss ratio problems.

 

[Producer Patrick]

This appears to be a surplus problem with NW. I just wish they would be honest and say, "we don't want anymore new business until further notice", instead of making the qualifications for new business impossible to comply with.

wonder if this has to do with regulators hearing 'we don't want new business' as 'we are exiting the market' which is treated rather differently than 'we are revising our UW requirements'.