N.Y. MetLife Auto Customers See Fraud Dividend

NU Online News Service, Dec. 23, 11:46 a.m.EST--Metlife Auto & Home auto policyholders in NewYork state will see a rate reduction of 6 percent on their policiesin 2005, the company said, a move the state's regulator called a"fraud-fighting" dividend.[@@]

The move came after New York's Superintendent of InsuranceGregory Serio met last month with a group of insurers to discussrate reductions in light of reduced losses resulting from stateinsurance regulatory reforms targeting fraud.

Mr. Serio asked MetLife and 12 other auto insurers, cumulativelyserving more than 60 percent of the state's drivers, to meet withhim to discuss possible rate reductions. He said "compellingindustry data" indicated losses had dropped substantially between2002 and the third quarter of 2004.

Last week, Washington D.C.-based GEICO announced a 6 percentrate reduction for the typical policyholder next year. State Farmand Progressive cut auto insurance rates earlier this year.Meetings with other carriers are continuing.

The new MetLife rate structure will go into effect Feb. 1 formost first time customers and starting on April 1 for thoserenewing existing policies.

The Warwick, R.I. subsidiary of New York-based MetLife insuresabout 275,000 passenger vehicles in New York, which translates intoalmost 3 percent of the state's total market share as of December2004.