Business Development Associates
Main PageServicesThe BDA WayEventsAbout BDAResourcesTestimonialsBDA
spacer
spacer
spacer
spacer

State Farm Fine-Tunes Risk Assessment, Decreases Rates

A.M. Best recently reported that carriers are looking at more than just rate increases to help them maintain profitability in a volatile property insurance market. Other risk-management initiatives that are being looked at include mandatory wind/hail deductibles, percentage hurricane deductibles and roof limitations based on the age and condition of the roof. Geo-coding and better understanding a specific home’s (versus an area’s) risk is also becoming a new trend in risk management practices.

Looking at “micro-zones” versus more broad measures is one way that State Farm in CA is able to manage the carrier’s risk while also offering more discounts to their client’s premiums. Beginning April 15th, State Farm, the largest homeowner insurer in CA, is dropping rates by an average 12.6% for more than a million customers. When looking at State Farm’s customer base in CA, that means 85% of the homeowners they insure will see an approximate $100 savings in their premiums. Renters will also see some savings upon renewal.

Instead of looking at just the zip code, State Farm’s new rate-setting system breaks down risk factors such as geology and fire danger, based on the exact geographic location of the home. This will position State Farm as having the ability to offer competitive pricing based on a fine-tuned set of risk assessments.

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

3 Responses to “State Farm Fine-Tunes Risk Assessment, Decreases Rates”


  • Normally I do not read post on blogs, but I would like to say that this write-up very pressured me to try and do it! Your writing style has been amazed me. Thanks, quite nice post.

  • It’s rather a neat as well as beneficial bit of info. My business is pleased you provided this useful info about. You should keep us up to date similar to this. We appreciate you revealing. It’s rather a neat as well as beneficial bit of info. My business is pleased you provided this useful info about. You should keep us up to date similar to this. We appreciate you revealing.

  • It’s really a nice and helpful piece of information. I am
    satisfied that you just shared this useful information with us.
    Please stay us informed like this. Thank you for sharing.

Leave a Reply



spacer
spacer
www.gobda.com
spacer
©Copyright 2011 Business Development Associates, Inc.