Non-Standard Auto Business Practices - 2014

Date:DEC 2014
Status:Complete
Cost: $2500 Add to Cart
Detail:

The non-standard auto business model has some characteristics and practices that are different from the business model at a standard property-casualty carrier largely because of the target market, competition from other carriers, and the customer’s ability to pay. Ward Group conducted a survey of property-casualty carriers who write non-standard auto policies to help companies better understand how the differences related to the non-standard auto business model impact their business practices, capabilities and other metrics.

The Non-Standard Auto Business Practices survey was conducted throughout September and October 2014. Unless otherwise specified, data represents 2013 totals. In order to maintain the confidentiality of the data, the names of the nine participants have not been disclosed. Results were calculated using the total number of participant responses to each survey topic.

These results are summarized below and, where relevant, compared against benchmarks compiled from other Ward Group strategic studies, including:

  • 2014 Ward Group Business Environment Survey
  • 2014 Insurance Billing Practices Survey
  • 2013 Agency Management and Compensation Study
  • 2010 Customer Retention Study 

Table of Contents

Executive Summary

  • Overview
  • Benchmark Groups
  • Profile of Participants

Key Findings

  • NSA Industry Challenges
  • Business Environment 
  • Billing and Collections
  • Customer Retention
  • Claims
  • Commissions
Appendix: Detailed Study Results
 

Profile of Participants

Premium Volume

Average 2013 DPW for Non-Standard Auto Business: $368 million

Policies-in-Force

Average 2013 Policies-in-Force for Non-Standard Auto Business: 306,110

Five of the respondent carriers only write NSA business, while the other four represent the NSA sub-sets of multi-line companies

Geographic Dispersion

Average number of states licensed in: 30

Average number of states active in: 21




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