Providence Mutual Fire Insurance Co. has announced a deal to transfer its automobile insurance business to Plymouth Rock Assurance Co. in order to offer renewal opportunities to its policyholders in Connecticut and New Hampshire.
Plymouth Rock, which manages over $2 billion in auto, home, and umbrella insurance premiums across the northeastern US, will begin providing these renewal offers to eligible Providence Mutual customers before their policies reach their non-renewal dates.
The transition is expected to start with policies expiring at the end of March or early April next year, according to Providence Mutual’s statement.
Providence Mutual, which has about 3,500 policies in Connecticut and New Hampshire, said it has decided to exit the commercial and personal auto insurance markets in Connecticut, Maine, New Hampshire, and Rhode Island.
Michele Streton, president and CEO of Providence Mutual, stated that exiting the auto insurance market in these areas will allow the company to allocate more resources toward enhancing core products like homeowners’, umbrella, and business owners’ policies.
“We have worked tirelessly to create a seamless experience for our insureds and agents during this transition and are pleased to have a partner like Plymouth Rock, who shares in our commitment to delivering exceptional service to customers and agents alike,” said Streton.
As part of the transition, Providence Mutual will offer a new homeowner’s discount for those impacted by the change. The company expects this discount to be available in the first quarter of next year, after which policies with multi-policy discounts will be transitioned to the new discount as auto policies are nonrenewed or transferred by agents.
Providence Mutual ranks as the 43rd-largest auto insurer in Connecticut with a market share of 0.15%, according to BestLink data. Plymouth Rock Assurance, on the other hand, is ranked 18th in the state with a market share of 1.11%. In New Hampshire, Providence Mutual holds the 47th spot with a 0.14% market share, while Plymouth Rock is ranked 15th with a 2.06% share.
What do you think about this transition in the auto insurance market? Share your thoughts in the comments.
