Progressive Corp is temporarily restricting new homeowners (HO3) policies for certain agents in Texas, according to a company spokesperson. The company has also implemented similar measures in several other states.
A Progressive spokesperson explained that these actions are aimed at positioning the company for long-term stability and competitiveness in the property market.
According to a report from AM Best, Progressive emphasized that the restrictions do not affect agents’ ability to write personal auto, recreational lines, or commercial offerings, and that property-appointed agents will still be able to sell renters, condo, flood, and umbrella policies.
In a second-quarter letter to shareholders, Progressive president and CEO Tricia Griffith (pictured above) noted that May was the most active month for severe weather in the past 13 years. The US saw 15 individual billion-dollar loss events in the first half of 2024, compared with an average of 8.5 such events annually from 1980 to 2023.
According to Progressive’s second-quarter 2024 report, Texas accounted for nearly 40% of its storm losses during the period, with Florida, Colorado, Missouri, and Nebraska making up another 30%.
“Reducing the impact from weather-related volatility is strategically important and shifting our geographic mix continues to be a top priority,” Griffith wrote. “We continue to focus on growing in states where weather risk is relatively lower, while maintaining or reducing our market share in higher volatile states that are more susceptible to catastrophic weather events and have higher exposure to hail.”
Progressive aims to end 2024 with 60% of its in-force policies in states that are less prone to catastrophic weather events. In 2021, about 45% of its policies were in states with less severe weather.
According to data from the Insurance Council of Texas (ICT), direct losses for homeowners multiperil carriers in Texas rose by 53% in 2023, surpassing $9.83 billion. Rich Johnson, ICT's director of communications and public affairs, noted that Texas ranks high in exposure to multiple catastrophe risks, including flooding, hurricanes, wind, and hail, as well as severe winter storms and freezing events in recent years.
Johnson pointed out that Texas faces other challenges, such as rising labor costs, material shortages, and inflation, which are impacting insurance markets across the country.
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