Nationwide Insurance in California pulling back

[alexpfeifer]

About 6 months ago, Nationwide changed up how independent agents are able to do business with them on the personal lines side. We could no longer quote new business without an underwriter's approval. And in order to get that approval we would need to upload about 30 different documents. I'm just curious if any brokers have gone through the draconian process of obtaining a quote and written business with Nationwide since the changes took place.

 

[Al3x Lee]

What kind of documents are they asking for?

 

[shawnmwalker]

^^^^^Op does not understand what is occurring in the industry let alone CA.
In short: Hard market Nationally. 100 times worse in CA. Watch this whole video: Insurance Spectrum Part #1 - YouTube

 

[Markthebroker]

. And in order to get that approval we would need to upload about 30 different documents.

Seriously?

 

[NY independent]

In NY they require 800+ credit score, multi car, clean etc. Very tough.

 

[marindependent]

You have to look at this for what it really is. Rather than officially put a moratorium in place and shut down the market they make the requirements so onerous that nothing gets put into place.

I have one specific insurer - who shall remain nameless - that has so many requirements to both the autos and homes that it would be hard to imagine anyone qualifing.... and then they say we have to have BOTH the home and the auto together- ehemmmm - not possible.

[I am sure that they know this.]

I am just waiting for the personal lines market to get real bad from here in California.

And to watch it spread to surrounding states.

 

[MIGA1626]

I am an independent agent that writes a lot of commercial with Nationwide and has about 1 mil with them. They are absolutely stabbing everyone in the back. They have out of nowhere decided they don't want to write or renew any buildings built before 1993 because "every other carrier is doing it" absolutely criminal. This situation is getting out of control. You can't trust any carriers to place business with anymore.

 

[shawnmwalker]

And now this: State Farm Stops Taking New Applications for Business, Personal Lines P/C in California (insurancejournal.com)

 

[Al3x Lee]

Time for my unpopular opinion:

I think this has been a long time coming. For too long, policyholders have had an insouciant contempt towards insurers. This aggressive posture by the policyholders, coupled with their lazy & obstinate view towards the very idea of insurance & the regulators' willingness to slope settlements in favor of the insured, are significant parts of what has created these issues, in my opinion.

The time has come to reap what was sown. Those who are overleveraged, risk inclined, and for too long have transferred bad risks are in for a reckoning

 

[MIGA1626]

DAMN bro you going in.