Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Insurers have long contemplated exiting the homeowners line of business because it’s historically unprofitable. Recently, Allstate’s CEO, Tom Wilson, said the carrier considered vacating the homeowners market after the 2005 hurricane season. However, consumers have demonstrated their desire to bundle insurance coverage, and Allstate ultimately realized that not offering both auto and home was too big of a competitive disadvantage. Recent studies show that homeowners is growing in both policies and premium, yet the industry has only experienced four years with combined ratios below 100 since 1990.

The trends we’ve seen develop in auto—like online consumer shopping and increasingly sophisticated uses of data and analytics—are starting to take hold in homeowners, and now insurers have to tangle with complex market dynamics while simultaneously trying to boost underwriting profitability. As online shopping gains momentum, pricing competition will heat up, acquisition costs will increase, and retention rates will take a hit. If you don’t have the resources of a Top 20 insurer, this may represent a fundamental shift in how you run your business.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Dax Craig


Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.