Allstate profits hit by auto insurance decline
A decline in auto insurance business along with rising claims has hit the profits of Allstate Corp. Third quarter profit fell 17 per cent to $650 million from $781 million a year earlier. Operating income was $1.52 per share, 20 cents higher than expected by analysts polled by Bloomberg. Chief Executive Officer Tom Wilson has said that the insurer would raise rates for drivers to help alleviate some pressure from mounting claims. More people have traveled on U.S. highways in the past few months amid lower gas prices and an improving economy, increasing the risk of accidents.
Uber drivers losing coverage
Aviva Canada is reportedly taking action against Uber drivers who do not have commercial insurance. The Star says that it has seen an internal bulletin which advises employees of the insurer that personal auto policies are not sufficient for the drivers and puts themselves and others at risk. The article says that four drivers have had policies withdrawn or amended as part of a crackdown on inappropriate policies. It is calling for those driving for Uber to ensure that they are telling insurers that they are driving for Uber or risk losing coverage.
Warning for Chinese insurers over foreign investments
Chinese insurance companies seeking investments overseas could encounter increased risks according to a new report from Standard & Poor’s. The credit rating agency says that weak economic conditions in China could result in lower revenues but that insurers should tread carefully on foreign investments to cut the risks from unfamiliar territories.
Insurers sue state treasurer
Three insurance firms have filed a lawsuit against Illinois state treasurer Mike Frerichs. ABC News says that the action is in response to the treasurer’s proposed audit of insurance policy records to determine whether death benefits have been paid on life policies. The companies want to stop the official from accessing life policy records. Frerichs says that it is his office’s job to ensure payments. However the insurers; United Insurance Company of America in Illinois, Reserve National Insurance Company in Oklahoma and The Reliable Life Insurance Company of Missouri; argue that it is beyond the treasurer’s remit and say that they have paid death benefits according to state law.
